High GST to drive hybrid car sales into slow lane

Levy to go up from 30% to 43%; carmakers rethink plans for these models

Japanese car maker Toyota sold 10 million hybrid vehicles across the world last year, but it might it find difficult to sell a few thousands in India, with a high goods and services tax (GST) on these vehicles.

India, the fifth-largest car market in the world, is going to roll out the new indirect tax regime from July 1. Hybrid cars will attract a GST of 43 per cent (28 per cent tax and 15 per cent cess) — the same as luxury cars. At present, there is a 30 per cent tax on hybrid cars.

“India is