Level playing field on tax outgo in rupee terms should be created for hybrid variants: Experts

Syllabus: GS-III, Subject: Economy, Topic: Taxation, Issue: Hybrid vehicles and Taxation

Why in the News: the importance of hybrid vehicles in India’s efforts to become self-reliant in energy and reduce pollution.

Key Takeaways :

• Top of Formoutdated tax criteria unfairly burden hybrid vehicles, deterring consumers despite their environmental advantages
• Suggestions:
  • GST based on carbon to streamline taxation and promote the adoption of eco-friendly technologies.
  • immediate measures like cess adjustments to achieve tax parity for hybrids
• Hybrids are complementary, not transitory, to Battery Electric Vehicles (BEVs) and hydrogen fuel cell cars.
• They can expedite sustainable tech adoption without disrupting current infrastructure.

Prelims connect:

Source: Indian Express