Last Chance to Get a Rs 3 Lakh Discount on the Toyota Innova Hycross

Recent discussions around the GST on hybrid vehicles in the latest Union Budget did not result in the anticipated reductions. Although there was a cut in the basic customs duty for certain essential minerals, hybrid car buyers did not see any direct GST relief. In response, the Uttar Pradesh government had previously announced a full waiver of the registration tax for hybrid vehicles, which brought about a significant Rs 3 lakh discount on the Toyota Innova Hycross, one of India’s leading hybrid cars.

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Changes to Hybrid Tax Waiver

Recent reports indicate that the Uttar Pradesh Transport Department is revising the hybrid tax waiver policy. A letter from the department to car manufacturers revealed that the waiver will now only apply to hybrid models that qualify for the FAME II subsidies. This adjustment aims to address concerns raised by EV manufacturers about the impact of the new rule.

The state government has also expanded the FAME II policy to include 55,000 EVs and hybrid vehicles, primarily targeting four-wheelers used for commercial purposes priced below Rs 20 lakh. While the old tax waiver is still in effect, expect these changes to be implemented soon.

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Other Hybrid Developments

Earlier, Nitin Gadkari, Minister of Road Transport and Highways, had recommended a reduction in the GST on hybrid cars from 28 percent to 12 percent. This would have made hybrids more competitively priced compared to petrol cars. However, the central government rejected this proposal, focusing instead on encouraging the adoption of electric vehicles. Currently, EVs benefit from a 5 percent road tax, while hybrids face a hefty 43 percent tax.