October 7, 2022

After the electric car, now the hybrid car tax exemption! This is the plan

Now the government is planning to reduce the tax on hybrid cars, the information of which has been shared by an English website Autocar India. However, planning is still in the early stages.

Hybrid cars can be tax deductible.

100 percent electric cars, bikes, scooters and buses have already entered the Indian market, with the government subsidizing them to encourage their purchase. But now the government is planning to reduce the tax on hybrid cars, the information of which has been shared by an English website Autocar India. According to reports, the tax may soon be based on emission norms.

Currently, a team of experts is analyzing global and country data to understand demand. According to Autocar India, Heavy Industries Ministry Secretary Arun Goyal told them that this has been taken care of after SIAM panel discussions. Arun Goyal said he is working on feedback from the industry, which is on tax rates. This also includes emission norms.

Now how is tax charged on cars?

Currently, the Center levies only 5 percent tax on electric vehicles, while 29 percent is levied on mild hybrids and 43 percent on powerful hybrids. At the same time, 29 percent (sub 4 m vehicles) are used in internal combination engine (ICE) vehicles, which come with an engine of 1.2 liters. Whereas cars with sub-4 meter 1.5 liter engine attract 31 percent tax. Also, vehicles longer than 4 meters are taxed at 45 percent.

Find out how much tax is charged on a car

Vehicle engine type size the engine tax rate
electric car 5%
A mild hybrid vehicle 29%
Powerful hybrid car 43%
1.2L ICE engine Sub 4 meters Below 1.2L 29%
ICE engine Sub 4 meters 1.5 liters 31%
ICE engine 4 meters above 45%

What is a hybrid car?

Two types of power trains are available in hybrid car systems. It has two types of motors which provide the power to rotate the wheels. In fact, when the car runs on petrol, one of the car’s motors also generates electricity, which helps charge the battery. In this case, such a combination of petrol and battery is created inside the vehicle, due to which the vehicle gives more mileage and emits less pollution. Go here to read news about cars and automobile world.

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