India is proposing reducing import taxes on some electric vehicles from the U.K. in an effort to clinch a free-trade deal between the two nations by the end of the year, according to two people familiar with the discussions.
New Delhi is considering a concessional tariff of 30 percent on 2,500 electric vehicles imported annually from the U.K. priced above $80,000, the people said, asking not to be identified as the talks are private. India currently levies taxes between 70 percent and 100 percent on cars imported as completely built units, depending on their value.
The U.K.’s demand for import concessions on electric vehicles is one of the few outstanding issues in the free-trade talks. Prime Minister Rishi Sunak and his Indian counterpart Narendra Modi had hoped to finalize the agreement by the end of last month, but it’s unlikely a deal will now be announced until December, Bloomberg News previously reported.
India’s trade ministry did not immediately respond to a request for information. A spokesperson for the UK trade department declined to comment as the talks are still ongoing.