India is contemplating a substantial reduction in import taxes on solar panels to address the increasing demand for renewable energy and bridge the gap in local production, sources told Reuters.

The government seeks to accelerate the adoption of clean energy by cutting the import tax from 40 percent to 20 percent and potentially lowering the goods and services tax (GST) on solar panels from 12 percent to 5 percent.

Sources within the renewable energy ministry told&nbsp;Reuters&nbsp;that discussions have taken place with the finance ministry to seek approval for these tax cuts. The move aims to support the renewable energy sector and enable companies to meet the surging demand for solar power.

Major players in the Indian solar industry, including Tata Power, Adani Green, and Vikram Solar, have faced challenges in sourcing sufficient domestic equipment to complete their projects. The proposed tax cuts could alleviate these supply constraints by reducing the reliance on imports.

The tax increase on solar panels was implemented in April 2022, aligning with India's vision to enhance self-reliance and reduce emissions by expanding renewable energy generation. However, the local capacity for solar panel manufacturing is yet to keep up with the growing demand. With a current annual capacity of 32 gigawatts (GW), India's requirement stands at 52 GW due to the rising adoption of sustainable energy by corporate offices, industrial units, and factories.

Tax Makeover To Drive India’s Renewable Revolution

India has heavily relied on solar panel imports to bridge this gap, with an estimated need for 8 to 10 GW per year in the next two years. In the previous fiscal year alone, India imported solar panels worth $3 billion, with a staggering 92 percent originating from China. The proposed tax cuts could reduce the cost of imported panels by 20 percent, making them more competitive with domestically manufactured modules.

Prime Minister Modi has set an ambitious target of achieving 365 GW of installed solar capacity by 2031-32. However, slow progress in domestic component supplies and higher import taxes have hindered the growth of the renewable energy industry. The recent tax reduction aims to boost the sector's expansion, supporting Prime Minister Modi's comprehensive green energy strategy.

If implemented, the tax cuts would benefit solar power companies and facilitate the country's transition to a cleaner and more sustainable future. The increased affordability of imported solar panels could encourage wider adoption of solar energy across various sectors and contribute to reducing India's carbon footprint.

(With inputs from Reuters)

India is contemplating a substantial reduction in import taxes on solar panels to address the increasing demand for renewable energy and bridge the gap in local production, sources told Reuters.

India is contemplating a substantial reduction in import taxes on solar panels to address the increasing demand for renewable energy and bridge the gap in local production, sources told Reuters. The government seeks to accelerate the adoption of clean energy by cutting the import tax from 40 percent to 20 percent and potentially lowering the goods and services tax (GST) on solar panels from 12 percent to 5 percent. Sources within the renewable energy ministry told Reuters that discussions have taken place with the finance ministry to seek approval for these tax cuts. The move aims to support the renewable energy sector and enable companies to meet the surging demand for solar power. Major players in the Indian solar industry, including Tata Power, Adani Green, and Vikram Solar, have faced challenges in sourcing sufficient domestic equipment to complete their projects. The proposed tax cuts could alleviate these supply constraints by reducing the reliance on imports. The tax increase on solar panels was implemented in April 2022, aligning with India's vision to enhance self-reliance and reduce emissions by expanding renewable energy generation. However, the local capacity for solar panel manufacturing is yet to keep up with the growing demand. With a current annual capacity of 32 gigawatts (GW), India's requirement stands at 52 GW due to the rising adoption of sustainable energy by corporate offices, industrial units, and factories. Tax Makeover To Drive India’s Renewable Revolution India has heavily relied on solar panel imports to bridge this gap, with an estimated need for 8 to 10 GW per year in the next two years. In the previous fiscal year alone, India imported solar panels worth $3 billion, with a staggering 92 percent originating from China. The proposed tax cuts could reduce the cost of imported panels by 20 percent, making them more competitive with domestically manufactured modules. Prime Minister Modi has set an ambitious target of achieving 365 GW of installed solar capacity by 2031-32. However, slow progress in domestic component supplies and higher import taxes have hindered the growth of the renewable energy industry. The recent tax reduction aims to boost the sector's expansion, supporting Prime Minister Modi's comprehensive green energy strategy. If implemented, the tax cuts would benefit solar power companies and facilitate the country's transition to a cleaner and more sustainable future. The increased affordability of imported solar panels could encourage wider adoption of solar energy across various sectors and contribute to reducing India's carbon footprint. (With inputs from Reuters)

Solar panels get a tax makeover: India's 'sunny' solution to energy demands 

On Friday, India increased&nbsp;its basic import duty on gold from 7.5% to 12.5%, Reuters reported quoting the government.

India being the world's second biggest consumer of the precious metal is attempting&nbsp;to dampen demand and bring down the trade deficit.

Also read |&nbsp;<a href="https://www.wionews.com/world/gold-subdued-on-firm-yields-with-us-inflation-in-focus-486671">Gold subdued on firm yields with US inflation in focus</a>

The rise in duty would eventually result in a increase in the prices and moderate demand in India, which could weigh on global prices. However, according to officials,&nbsp;it may also stoke under-the-counter buying and increase&nbsp;appetite for precious metal smuggled into the country.

Reuters quoted&nbsp;managing director of RiddiSiddhi Bullions,&nbsp;Prithviraj Kothari, "The sudden rise in prices could bring down jewellery demand this month."

Dealers were offering a discount of up to $40 an ounce over official domestic prices after the duty hike, which includes&nbsp;12.5% import and 3% sales levies.&nbsp;While global gold prices fell 0.5% after the duty hike,&nbsp;local gold prices rose around 3%.

Watch |&nbsp;G7 leaders agree to ban gold imports from Russia

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India's May trade deficit widened from $6.53 billion a year ago to $24.29 billion currently, given the surge in gold imports in the month&nbsp;from 678 million&nbsp;a year ago to $6 billion.

Secretary at the India Bullion and Jewellers Association (IBJA),&nbsp;Surendra Mehta claimed that for&nbsp;the short-term gold demand could decrease but in the long run demand would remain strong and imports would rebound.

India's&nbsp;gold demand is mainly fulfilled by&nbsp;imports, which have been putting a pressure on the rupee hitting a record low earlier on Friday.

A Mumbai-based dealer with a global trading firm claimed that the&nbsp;hike has raised the gap between local and overseas prices to nearly&nbsp;15% which can boost smuggling of gold in the country.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/indias-may-palm-oil-imports-surge-to-7-month-high-despite-indonesias-ban-dealers-485914">India's May palm oil imports surge to 7-month high despite Indonesia's ban-dealers</a>

Smuggling was falling after the duty reduction and because of COVID-19 curbs on movement of people. But now it could rise again," the dealer added.

In weak Mumbai market the shares of jewellery makers such as Titan Kalyan Jewellers and Tribhovandas Bhimji Zaveri were down by close to&nbsp;4%.

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On Friday, India increased its basic import duty on gold from 7.5% to 12.5%, Reuters reported quoting the government. India being the world's second biggest consumer of the precious metal is attempting to dampen demand and bring down the trade deficit.

On Friday, India increased its basic import duty on gold from 7.5% to 12.5%, Reuters reported quoting the government. India being the world's second biggest consumer of the precious metal is attempting to dampen demand and bring down the trade deficit. Also read | Gold subdued on firm yields with US inflation in focus The rise in duty would eventually result in a increase in the prices and moderate demand in India, which could weigh on global prices. However, according to officials, it may also stoke under-the-counter buying and increase appetite for precious metal smuggled into the country. Reuters quoted managing director of RiddiSiddhi Bullions, Prithviraj Kothari, "The sudden rise in prices could bring down jewellery demand this month." Dealers were offering a discount of up to $40 an ounce over official domestic prices after the duty hike, which includes 12.5% import and 3% sales levies. While global gold prices fell 0.5% after the duty hike, local gold prices rose around 3%. Watch | G7 leaders agree to ban gold imports from Russia India's May trade deficit widened from $6.53 billion a year ago to $24.29 billion currently, given the surge in gold imports in the month from 678 million a year ago to $6 billion. Secretary at the India Bullion and Jewellers Association (IBJA), Surendra Mehta claimed that for the short-term gold demand could decrease but in the long run demand would remain strong and imports would rebound. India's gold demand is mainly fulfilled by imports, which have been putting a pressure on the rupee hitting a record low earlier on Friday. A Mumbai-based dealer with a global trading firm claimed that the hike has raised the gap between local and overseas prices to nearly 15% which can boost smuggling of gold in the country. Also read | India's May palm oil imports surge to 7-month high despite Indonesia's ban-dealers Smuggling was falling after the duty reduction and because of COVID-19 curbs on movement of people. But now it could rise again," the dealer added. In weak Mumbai market the shares of jewellery makers such as Titan Kalyan Jewellers and Tribhovandas Bhimji Zaveri were down by close to 4%. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India raises import tax on gold to 12.5% from 7.5% in surprise move

A hike in India&#39;s import tax on palm oil could dent overseas purchases by the world&#39;s biggest edible oil importer while making imports of soy oil and sunflower oil lucrative for the country&#39;s refiners, industry officials said.

Lower imports by such a major buyer could also weigh on prices for producers of palm oil, used in everything from soap to foodstuffs. Palm oil futures traded on the Bursa Malaysia Derivative Exchange have fallen more than 3 per cent since the duty was increased on Thursday.

In a move designed to support domestic farmers, India raised the import tax on crude palm oil to 44 per cent from 30 per cent and lifted the tax on refined palm oil to 54 per cent from 40 per cent.

&quot;Imports of soft oils are bound to increase at the cost of palm oil,&quot; Atul Chaturvedi, President of industry body Solvent Extractors Association of India told, referring to products like soy oil and sunflower oil. &quot;The biggest gainer could be sunflower oil.&quot;

Palm oil imports could drop by 500,000 tonnes in the 2017/18 marketing year that started on November 1, said Govindbhai Patel, managing director of trading firm GG Patel &amp; Nikhil Research Company. The country imported 9.3 million tonnes of palm oil in the previous marketing year.

India primarily imports palm oil from Indonesia and Malaysia, the world`s top two producers. 
&nbsp; 
Import duties on crude and refined soy oil remain 30 per cent and 35 per cent respectively. Meanwhile, crude sunflower oil carries a 25 per cent import tax, while refined sunflower oil is taxed at 35 per cent.

India imports soy oil from Argentina and Brazil, sunflower oil from Ukraine and Argentina, and canola oil from Canada.

&quot;Availability of soyoil is limited. So, large-scale substitution (of palm oil) is not possible with soy oil, but sunflower supplies are ample. Sunflower oil will replace palm oil,&quot; said a Mumbai-based dealer with a global trading firm.

Sunflower oil imports could jump to 3 million tonnes from 2.17 million tonnes a year ago, the dealer said. He spoke on condition of anonymity as he was not authorized to speak with media.

Still, industry officials said palm oil prices could correct to become competitive amid rising output.

One Kuala Lumpur-based trader now expects palm oil prices to fall to the 2,300-2,400 ringgit a tonne range. &quot;At 2,500 ringgit and above, palm is considered expensive,&quot; he said.

Palm oil output is expected to rise in line with the seasonal trend from March onwards, putting further pressure on palm oil prices as stocks are expected to build. Malaysia in January had suspended export taxes on crude palm oil for a three-month period to encourage demand and support prices.

A hike in India`s import tax on palm oil could dent overseas purchases by the world`s biggest edible oil importer while making imports of soyoil and sunflower oil lucrative for the country`s refiners

A hike in India's import tax on palm oil could dent overseas purchases by the world's biggest edible oil importer while making imports of soy oil and sunflower oil lucrative for the country's refiners, industry officials said. Lower imports by such a major buyer could also weigh on prices for producers of palm oil, used in everything from soap to foodstuffs. Palm oil futures traded on the Bursa Malaysia Derivative Exchange have fallen more than 3 per cent since the duty was increased on Thursday. In a move designed to support domestic farmers, India raised the import tax on crude palm oil to 44 per cent from 30 per cent and lifted the tax on refined palm oil to 54 per cent from 40 per cent. "Imports of soft oils are bound to increase at the cost of palm oil," Atul Chaturvedi, President of industry body Solvent Extractors Association of India told, referring to products like soy oil and sunflower oil. "The biggest gainer could be sunflower oil." Palm oil imports could drop by 500,000 tonnes in the 2017/18 marketing year that started on November 1, said Govindbhai Patel, managing director of trading firm GG Patel & Nikhil Research Company. The country imported 9.3 million tonnes of palm oil in the previous marketing year. India primarily imports palm oil from Indonesia and Malaysia, the world`s top two producers. Import duties on crude and refined soy oil remain 30 per cent and 35 per cent respectively. Meanwhile, crude sunflower oil carries a 25 per cent import tax, while refined sunflower oil is taxed at 35 per cent. India imports soy oil from Argentina and Brazil, sunflower oil from Ukraine and Argentina, and canola oil from Canada. "Availability of soyoil is limited. So, large-scale substitution (of palm oil) is not possible with soy oil, but sunflower supplies are ample. Sunflower oil will replace palm oil," said a Mumbai-based dealer with a global trading firm. Sunflower oil imports could jump to 3 million tonnes from 2.17 million tonnes a year ago, the dealer said. He spoke on condition of anonymity as he was not authorized to speak with media. Still, industry officials said palm oil prices could correct to become competitive amid rising output. One Kuala Lumpur-based trader now expects palm oil prices to fall to the 2,300-2,400 ringgit a tonne range. "At 2,500 ringgit and above, palm is considered expensive," he said. Palm oil output is expected to rise in line with the seasonal trend from March onwards, putting further pressure on palm oil prices as stocks are expected to build. Malaysia in January had suspended export taxes on crude palm oil for a three-month period to encourage demand and support prices.

India's tax hike to slash palm oil imports, boost soy oil, sunflower oil buying

India doubled the import tax on crude palm oil to 30 percent, while the duty on refined palm oil has been raised to 40 percent from 25 percent earlier, the government said in an order late on Friday, as it tries to support local farmers.

The world&#39;s biggest importer of edible oils also raised the import tax on crude soyoil to 30 percent from 17.5 percent earlier. It raised the import tax on refined soyoil to 35 percent from 20 percent earlier, it said.

India imports palm oil mainly from Indonesia and Malaysia and soyoil from Argentina and Brazil.

The world's biggest importer of edible oils also raised the import tax on crude soyoil to 30 percent from 17.5 percent earlier

India doubled the import tax on crude palm oil to 30 percent, while the duty on refined palm oil has been raised to 40 percent from 25 percent earlier, the government said in an order late on Friday, as it tries to support local farmers. The world's biggest importer of edible oils also raised the import tax on crude soyoil to 30 percent from 17.5 percent earlier. It raised the import tax on refined soyoil to 35 percent from 20 percent earlier, it said. India imports palm oil mainly from Indonesia and Malaysia and soyoil from Argentina and Brazil.

India raises import tax on edible oils

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