Will request FM to reduce tax rate on hybrid vehicles: Gadkari

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.

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.

The automobile industry has expressed concern on the high rate on hybrids stating it would put a spanner in the wheels of government plans to promote green vehicles.

At present hybrid vehicles attracts excise duty of 12.5 per cent with an effective overall tax rate of 30.3 per cent.

"I will be meeting Arun Jaitley soon to request that tax slabs for vehicles run on ethanol, bio diesel, bio CNG should be reduced. 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

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