From Maruti to Toyota, hybrid cars on slow track after a year of high taxes

The Delhi government had allowed a low VAT of 5% on hybrid vehicles against 12.5% on other vehicles

A year of high taxes, which came with the implementation of Goods and Services Tax (GST), has almost killed the budding hybrid car market. While Hyundai has junked its hybrid car plans, companies like Maruti Suzuki and Toyota have seen a drop of up to 76 per cent in sales of hybrid cars. 

The GST Council last year imposed a cess of 15 per cent on hybrid vehicles, in addition to the 28 per cent GST, leading to a total tax burden of 43 per cent against a previous tax rate of 28 per cent. N Raja, deputy managing director