Toyota Innova HyCross Hybrid variants were anticipated to receive a significant price cut. However, there’s a major update that might not be well-received: the Finance Ministry is not expected to discuss granting tax concessions to hybrid cars in the upcoming GST council meeting. This development affects the expected price reduction for the Innova HyCross Hybrid variants.
Rs. 8 Lakh Price Cut for Hybrids: Will it happen?
Union Minister for Road Transport and Highways, Nitin Gadkari, had previously proposed a significant tax reduction on hybrid vehicles, which could benefit popular models like the Toyota Innova HyCross. He suggested reducing the current 48% GST on hybrid vehicles to 12%, potentially leading to substantial cost savings for buyers.
However, there’s a major update: the Finance Ministry is not expected to discuss granting tax concessions to hybrid cars in the upcoming GST council meeting. Chaired by Nirmala Sitharaman, the ministry opposes these tax concessions. Currently, hybrid and ICE vehicles face a 28% GST, with an additional CESS of 15% for hybrids with engines above 1200cc for petrol and 1500cc for diesel, while there is no CESS on hybrids below these thresholds.
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. He 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, which focus primarily on hybrid vehicles along with petrol options, are also preparing to introduce electric vehicles. The sales of hybrid vehicles are rising, with more models expected from Maruti Suzuki and Toyota in the coming months. There is still a possibility that we may see a reduction in the GST percentage.
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