Auto News

Under GST rates, Hybrids to cost more

  20 May,2017

In what is being termed as surprising and unfair by the auto industry, hybrid cars are now being put under the same tax bracket as luxury cars which means hybrids now have 15 percent cess and 28 percent tax being added. Thus now with 43 percent, instead of 12.5 percent, currently, hybrid cars will now cost a lot more. Thus while hybrids are put under the luxury cars, electric cars continue to have only 12 percent under GST. This follows the recent withdrawal of the FAME scheme which was given to mild hybrids like the Ciaz SHVs. This, says the auto industry, is at odds with the Govt promoting eco-friendly cars. What this means, while currently hybrids would be expensive, this move would deter many other car-makers to launch such cars in the future.

Words- Sunil Kumar



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