GST Council can reconsider 43 percent of the goods and service tax (GST) imposed on the hybrid car. A similar tax has been imposed on hybrid cars and passenger cars. The automobile industry had expressed concern over imposing so much tax on hybrid cars.
An official of the revenue department said that the rate of tax on hybrid vehicles has increased. We are looking at the concerns of the industry. The council may consider this in its meeting on June 3. At present, 30.3 per cent tax is going on, which will increase to 43 per cent in GST.
According to the auto industry, more tax on hybrid cars does not match the long-term goal of promoting green energy of the government. The industry will keep its side in front of the Finance Ministry.
Currently, Toyota's Camry and Prius and Honda's Accord hybrid car sells in India. The price of these cars is between 32 lakh and 39 million. Many more companies are planning to land in this segment.
The official says that the rates of GST have been told in advance so that the industry gets time to prepare. Toyota Kirloskar Motor's Vice Chairman Shekhar Viswanathan said that if looking at a tax on hybrid vehicles, it is against the environment.
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