Why this country is against providing costly incentives for EV manufacturing

Peru's government on Thursday said a bill in Congress to boost the domestic electric vehicle (EV) industry was too expensive and unnecessary. The bill, currently up for debate in Peru's right-wing opposition-dominated Congress, would provide incentives for investments in the South American country's nascent EV market.

By: Reuters
| Updated on: 09 Jun 2023, 12:31 PM
Follow us on:
Follow us on:
File photo used for representational purpose. (REUTERS)
File photo used for representational purpose.

In a statement, Peru's economy ministry said tax exemptions in the legislation would have a cost of approximately 20 billion soles ($5.5 billion) between 2023 and 2032.

The proposal "is excessively expensive considering that global producers already plan to migrate their production to electric vehicles in a period of 5 to 10 years," the ministry said.

Tax exemptions in the legislation cover various types of four-wheel EVs, "including luxury cars and golf carts," the statement added. "The proposal is regressive and ineffective because it mainly benefits a segment of the population that does not need state assistance and will not contribute to reducing the impact of environmental pollution or vehicular congestion."

In 2018, Peru took a first step to promote electric transportation by reducing the import tax on electric vehicles to zero.

First Published Date: 09 Jun 2023, 12:31 PM IST
Shopping Bag Shop Now
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 99
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 349
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 99

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.