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High GST rate will kill hybrid cars: Automakers tell govt

Hasmukh Adhia has clarified that small hybrid vehicles would be taxed at 28% and large ones at 43%

Reuters  |  New Delhi 

Automakers will this week urge the government to lower a proposed sales tax on hybrid vehicles, as they fear the planned rate could make development of the technology unviable, industry sources and executives told Reuters on Monday. Last week, the government said it would tax hybrid vehicles at a rate as high as 43 per cent under the Goods and Services Tax (GST) tax regime set to come into effect from July 1. That would be significantly higher than the prevailing tax of about 29 per cent on such cars. The Society of Indian Automobile Manufacturers (SIAM), whose members ...

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First Published: Tue, May 23 2017. 09:29 IST
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