Union Minister for Road Transport and Highways, Nitin Gadkari has hinted that the hybrid cars in India may receive a tax concession in the coming mont
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Union Minister for Road Transport and Highways, Nitin Gadkari has hinted that the Indian government is serious about lowering the GST rates for hybrid cars. The minister stated that the proposal to reduce GST on hybrid vehicles to five per cent and to 12 per cent for flex-engine powered vehicles has been sent to the Finance Ministry, which is considering the request.
Gadkari’s comment comes at a time when several carmakers present in India have been lobbying for tax cuts on hybrid vehicles. Leading auto OEMs such as Maruti Suzuki, Hyundai and Toyota are among them. These automakers have lobbied for the lower tax for hybrid cars stating that they emit lower pollutants into the environment, which should make them eligible for tax concession compared to pure petrol or pure diesel vehicles. However, Tata Motors has lobbied against the tax cut saying that even though the hybrid cars are electrified vehicles, they come propelled by internal combustion engines and emit pollutants into the environment, which should be enough not to offer tax concession to such vehicles.
First Published Date: 01 Apr 2024, 15:40 PM IST