Auto industry is also planning to take up the matter of higher tax rate on hybrid vehicles with the Finance Ministry this week.If such vehicles are encouraged on a large scale, the cost will also come down, he added.Under the GST rates announced last week, hybrid cars, which are considered eco-friendly, are slated to attract a 15 per cent cess over and above peak rate of 28 per cent, same as those of large luxury cars and SUVs. Electric, ethanol, bio diesel, bio CNG these are import substitutes and are cost effective, pollution free and indigenous too," Gadkari said."It is our policy to encourage electric cars and buses. Hybrid cars should also be encouraged, it saves fuel," he said.
The minister, who also holds Shipping portfolio, said the government39;s policy is to promote electric mobility in the country.Union Road Transport Minister Nitin Gadkari."We import crude worth Rs 7 lakh crore. GST rate on electric vehicles has been kept at 12 per cent.3 per cent. Shortly, I will be coming out a policy regarding this. A host of other companies were also planning to foray into the segment.At present hybrid vehicles attracts excise duty of 12. These cars are priced between Rs 31. Electric and hybrid vehicles along with alternate fuels like ethanol should be encouraged in order to reduce India39;s import of crude oil."I will be meeting Arun Jaitley soon to request that tax slabs for vehicles run on ethanol, bio diesel, bio CNG should be reduced.New Delhi: Union Minister Nitin Gadkari today said that he will urge Finance Minister Arun Jaitley to bring down GST rate on hybrid vehicles and other automobiles that run on alternate fuels.98 lakh and Rs 38.5 per cent with an effective overall tax rate of 30.end-ofTags: gst, goods and services tax, gst council, road transport, nhai, nitin gadkari, hybrid vehicles, imported cars, mercedesLocation: India, Delhi, New DelhiRelated StoriesFlat, apartment maintenance to cost more under GSTEntertainment, cable, DTH to be cheaper under GSTGST to bring down prices of commodities: ParrikarSuspect named after youngsters killed in UK concert attackGST to add 40 bps to growth rate; won't stoke inflation: HSBCGST execution from July 1 a challenge for industry: AssochamGST Council may review steep levy on hybrid carsEasemyGST, Microsoft in pact to help SMEs get GST compliantGST impact on air travel to be marginal: ICRARealtors differ over GST's impact on housing pricesCyber security is key for GST’s successTaxmann recognised as GST Suvidha Provider by govtHotel owners to press for 5 pc slab at GST review meetSidharth Malhotra supports Siddharth Roy Kapur's view on GST.
I will also request him to reduce tax rate on hybrid vehicles in order to tackle air pollution in the long run," Road Transport and Highways Minister Nitin Gadkari told PTI in an interaction.Some of the popular hybrid vehicles sold in India are Camry Hybrid and Prius from Toyota and Honda Accord.96 lakh.Hybrid cars slated to attract a 15 per cent cess over and above peak rate of 28 per cent under GST.The automobile industry has expressed concern on the high rate on hybrids stating it would put a spanner in the wheels of government plans fat tire electric bicycle manufacturers to promote green vehicles.