Previously, we had covered that Toyota Innova HyCross Hybrid variants will be getting a huge price cut, but now we’ve a big update regarding this information, and might not like it.
Hybrids GST Reduction: All Details!
Previously, Union Minister for Road Transport and Highways, Nitin Gadkari, has proposed a substantial tax reduction on hybrid vehicles, potentially benefitting popular models like the Toyota Innova HyCross. He suggested that slashing the current 48% GST on hybrid vehicles to 12%, which could lead to significant cost savings for buyers.
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But now we’ve a big update. Finance Ministry is not expected to discuss granting tax concessions to hybrid cars in the upcoming GST council meeting. The ministry, chaired by Nirmala Sitharaman, opposes these tax concessions. Currently, hybrid and ICE vehicles face a 28% GST, with additional CESS of 15% for hybrids above the 1200cc Petrol and 1500cc engines, while there is no CESS on hybrids below 1200cc and 1500cc engines.
Gadkari argues that lowering GST on hybrid vehicles would promote eco-friendly transportation and help reduce pollution levels in the country. This proposed tax reduction aligns with the government’s efforts to promote electric and hybrid vehicles to combat climate change and air pollution. Gadkari emphasized the need to incentivize cleaner technologies in the automotive sector for a greener and more sustainable future.
Carmakers such as Honda, Toyota, and Maruti Suzuki, focus primarily on hybrid vehicles along with petrol option and are soon to introduce electric vehicles. The sales of hybrids vehicles are on rise and more are coming from Maruti Suzuki and Toyota in coming months. There is still a possibility we may see the reduction in GST percentage.
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