Why the step-motherly treatment of hybrid cars? Only 5% GST on electric and 28% GST on hybrid! Demand to reduce taxes arose again



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New Delhi. Toyota Kirloskar Motor (TKM) has recently launched Camry Hybrid Facelift (New Toyota Camry) in India. This new luxury sedan offers a great hybrid option with its great performance, attractive design and safety features. The ex-showroom price of the car has been kept at Rs 48 lakh and its mileage is 25.49 km per litre.

On the occasion of the launch of the new Camry, TKM’s Indian business head Vikram Gulati demanded the government to give tax exemption on hybrid vehicles. He says that not only electric vehicles, but all such technologies which cause less harm to the environment should be encouraged.

Hybrid cars cause less pollution than petrol
Vikram Gulati said that like electric vehicles, hybrid vehicles also play an important role in reducing the consumption of petrol and diesel. He said that the government should consider reducing taxes on hybrid vehicles to promote hybrid technology and support the Make in India campaign.

Present tax structure on hybrid vehicles
At present, petrol and diesel vehicles in India are charged an additional tax of 1% to 22% along with 28% GST, which is collected from customers in the form of cess. Only 5% GST is applicable on fully electric vehicles. 12% GST is imposed on vehicles running on hydrogen. At the same time, the government collects tax on hybrid vehicles just like petrol-diesel vehicles.

Why is discount on hybrid vehicles necessary?
Many companies are opposing tax exemption on hybrid vehicles. On this, Vikram Gulati emphasized that hybrid technology is an effective solution which reduces fuel consumption and carbon emissions. He said that tax exemption should not be limited to any one technology. Instead, all such technologies should be encouraged which help in reducing pollution and promoting technological development in the country.

Features of hybrid vehicles
Hybrid vehicles are equipped with a petrol-diesel engine coupled with an electric motor. At low speeds, these vehicles run on batteries, while at higher speeds petrol-diesel engines are used. This saves fuel and also reduces pollution.

Toyota believes that hybrid vehicles can be a great option in countries like India, where the infrastructure for electric vehicles is not yet fully developed. This will not only help in saving fuel, but will also gradually motivate people towards electric vehicles.

Tags: Auto News, Toyota Motors