India intends to impose tax on imported power equipment

According to the “Indian Express” on the 19th, the Indian government plans to impose a 19% tariff on imported power equipment in the near future, and at the same time, it will increase the mandatory local procurement terms for ultra-large power plant projects.

According to the report, a special panel set up by the Indian Planning Commission for taxation of imported power equipment has decided that the Ministry of Electric Power will submit relevant proposals to the Indian Cabinet Economic Committee within a week and it is expected to be approved by the end of February.

In fact, in the past two years, Indian local power equipment manufacturers have repeatedly lobbied for the government, hoping to levy high tariffs on imported power equipment. Afterwards, after discussion by the above-mentioned panel, it was proposed to implement a 14% tariff standard. However, due to the fact that the power shortage in India has been expanding in recent years, and the relevant decisions may affect the growth of the power industry, the Indian Ministry of Finance does not agree. Until the beginning of February this year, the Indian Prime Minister's office was involved in the promotion. The Ministry of Finance agreed on the 17th to levy 5% tariff, 10% countervailing duty, and 4% additional tax on imported power equipment.

According to statistics, currently power equipment accounts for about 25% of India's imports from China, and half of India's new power equipment in the next five-year plan will also come from Chinese manufacturers. The industry believes that this move will not only greatly affect the interests of China's power equipment exporters, but will also harm the interests of private owners of the Indian local power industry, further aggravating the bottleneck problem of India's electricity.

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