The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh called for tax rationalisation in hybrid cars by reducing the duty structure on them on Thursday. Writing to the Ministry of Heavy Industries, Singh proposed lower duty on hybrid cars in comparison to that of petrol-diesel-run cars.
In particular, hybrid and petrol and diesel cars are subject to 43 taxes. “We have written to the Ministry of Heavy Industry (telling them) that all-electric vehicles are subject to a 5% tax. Around 43% of taxes apply to petrol and diesel. automobiles, adding taxes. What we’re saying is that hybrid cars are not taxable. The same tax as gasoline and diesel,” the DPIIT secretary told ANI.
“It may not be as low as electric cars, but the taxes on those cars deserve to be lower,” he said. Reducing taxes on hybrid cars will incentivize car buyers to opt for dual-fuel vehicles.
He argued that hybrid cars may not get as many concessions as fully electric cars, but that the ministry deserves to at least grant a small concession compared to gasoline and diesel cars. A hybrid car uses multiple energy sources, combining a gasoline or diesel engine with an electric motor, and the two systems paint in combination to move the vehicle. This allows the car to burn less gasoline, achieving greater fuel power than a classic engine that uses only fuel. (ANI)
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