Enhanced sales tax under GST could make hybrids unviable- Indian automakers

GST Council report revealed that under a new unified tax regime (effective from July 1) that hybrid vehicles will be taxed at a rate as high as 43 percent which is significantly higher than the prevailing tax of 29 per cent.

The planned rate distress the Indian automakers as this rate could make the development of the hybrid technology unviable. This week they impel the government to lower the proposed sale tax rate.

If the tax rate is not revised it will make the hybrid vehicles unviable and will make this car out of the market as told by the member of India’s auto trade body.

The higher rate putting the strain on the car-maker that have invested in hybrid technology as this tax comes at a time when India is designing a new green car policy that incentives electric vehicles over hybrid and conventional models.

The government should once study the proposed tax structure in order to achieve the cleaner vehicles.