The hybrid cars currently come slapped with a high tax rate under GST regime
Major auto manufacturing companies like Maruti Suzuki, Toyota and Hyundai have been advocating for lower tax on hybrid cars
Union Minister Nitin Gadkari has hinted the Indian government is assessing the proposal and may lower tax on hybrid cars
Gadkari hinted the hybrid cars may attract a reduced rate of 5% GST if the Finance Ministry approves the proposal
He also said that the flex-fuel engine powered vehicles will see a 12% tax rate
The minister further reiterated his ambition to make India a country with fossil-fuel-free transport in the coming days
However, Gadkari didn't provide a timeline for elimination of petrol and diesel cars in India
He stated that currently India spends ₹16 lakh crore for importing fossil fuel
Electrified propulsion technology will help India to reduce its dependence on fossil fuel