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No revision in cess on hybrid cars, small cars: FinMin

Demand for hybrid cars are on a decline since July 1 when companies raised prices by as much as 20%

Arup Roychoudhary  |  New Delhi 

Toyota, hybrid cars

After the Council empowering the Centre to bring an amendment in the compensation law to increase ceiling on on the luxury cars, infuriating auto companies, the on Thursday ruled out lowering on hybrid luxury cars. Demand for hybrid cars has been on the decline ever since was rolled out in July.

A key official said there would not be any downward revision in rates or for hybrid cars.

He also tried to allay fears of auto industry over imminent hike in ceiling on on luxury cars from 15 per cent to 25 per cent, saying it is just an enabling provision.

The official said there will not be any hike in in small cars. Currently, the is in the range of 1-3 per cent over 28 per cent peak rate, against the ceiling of 15 per cent.

Demand for hybrid cars are on a decline since July 1 when companies raised prices by as much as 20 per cent to pass on the impact of the goods and services (GST). Toyota, which was seeing a gradual acceptance of its Camry Hybrid, has seen demand dip by about 30 per cent. Maruti Suzuki, the biggest carmaker, with its mild hybrid vehicles Ciaz and Ertiga, said a 'steep' decline was already visible.

India has decided to hybrid vehicles at 43 per cent (including a 15 per cent cess), a rate identical to taxes that luxury cars attract under the Hybrid vehicles earlier attracted taxes of about 30 per cent and in markets like Delhi it was even lower due to a differential in value-added Industry body Siam has approached the government with a request to bring down the rate on hybrid vehicles from 28 per cent to 18 per cent while doing away with the  

First Published: Thu, August 10 2017. 02:07 IST