DPIIT Secretary Advocates Lower Duties For Hybrid Cars

Gandhinagar, Jan 12 (KNN) Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), advocated for a re-evaluation of the tax structure for hybrid cars, urging a reduction in duties.

In a letter addressed to the Ministry of Heavy Industries on Thursday, Singh recommended a lower duty for hybrid vehicles compared to conventional petrol and diesel cars.

Currently, both hybrid and traditional vehicles are subject to a 43 per cent duty.

Singh emphasised the need for a differentiated duty structure, pointing out that fully electric vehicles attract a mere 5 per cent duty, while petrol and diesel vehicles, including cess, incur a 43 per cent duty.

“What we are saying is that hybrid cars should not be subject to the same duty as petrol and diesel,” DPIIT secretary told ANI.

He added, “It may not be as low as electric cars, but the duty on it should be slightly less.”

Singh stressed the importance of providing some concession to encourage the adoption of dual-fuelled vehicles.

The objective is to create incentives for consumers to opt for hybrid cars, which utilise both traditional fuel sources and electric power.

Singh clarified that although hybrid vehicles may not receive concessions equivalent to fully electric vehicles, the ministry should at least consider offering a modest reduction in duty compared to petrol and diesel vehicles.

He highlighted the distinct nature of hybrid cars, which combine a petrol or diesel engine with an electric motor, resulting in enhanced fuel efficiency.

This integration of multiple energy sources allows hybrid cars to consume less gasoline compared to traditional vehicles, aligning with the broader goal of promoting sustainable and energy-efficient transportation.

(KNN Bureau)