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India drops excise duty on electric bikes

India, the seventh largest but second most populous country in the world, has good reason to encourage electric vehicle sales, considering that its automobile market is growing very rapidly. Pollution could become a much larger problem than it already is if steps are not taken to manage it now. India's government realizes this fact, which led it to recently waive the excise duty for electric cars. Up until now, though, the tax has stood at 8 percent for electric bikes. Not anymore, as both two- and three-wheeled electric bikes are now duty-free, enabling them to be more cost-competitive against the gasoline-powered motorcycles they compete with. According to The Economic Times, electric cycles currently cost between Rs 20,000 to Rs 36,000. After the excise waiver goes into effect, the price for electric bikes should drop by Rs 1,800 to Rs 2,400.

[Source: The Economic Times]

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