Govt weighs tax cuts on flex-fuel vehicles in green push.

Syllabus: GS-III, Subject: Environment, Ecology and Disaster Management, Topic: Clean Energy, Issue: Flex fuel vehicles

Context: The government is considering a cut in taxes on flex-fuel vehicles, pushing for cleaner transportation.

Gist:

• Currently, 28% GST is levied on flex-fuel vehicles, while on electric vehicles it is 5%.
• The government has set a net-zero target by 2070.
• Ethanol blending target: 20% ethanol blended petrol by 2025.

Flex fuel vehicles:

• Equipped with internal combustion engines but designed to run on more than one fuel.
• Primarily meant to run on biofuels such as ethanol and methanol, or a blend of biofuels and conventional fuels.

Source: Mint