Union Minister’s Tax Reduction Plan Could Make Green Vehicles More Affordable
Union Minister for Road Transport and Highways, Nitin Gadkari, has put forth a groundbreaking proposal aimed at slashing taxes on hybrid vehicles, which could have far-reaching implications for the pricing of environmentally friendly cars such as the Toyota Innova HyCross. Gadkari made this announcement while addressing attendees at News18’s Rising Bharat Summit 2024.
The proposed reduction entails slashing the current 48 percent Goods and Services Tax (GST) on hybrid vehicles to a mere 12 percent, a move expected to result in substantial cost reductions for prospective buyers.
Among the vehicles poised to benefit from this proposed tax adjustment is the Toyota Innova HyCross, a model that has garnered significant attention in the market. Toyota offers a robust hybrid version of this MPV, with prices ranging from Rs 25.72 lakh to Rs 30.698 lakh ex-showroom.
Presently, the ex-showroom price of the Toyota Innova HyCross includes 28 percent GST and 15 percent CESS. However, sans these elements, the ex-factory cost of the vehicle stands at a more modest Rs 21.5 lakh.
Should Gadkari’s proposal come to fruition, and GST be reduced to 12 percent, the ex-showroom price of the Toyota Innova HyCross could plummet to approximately Rs 25.5 lakh, inclusive of 15 percent CESS. This considerable reduction could translate into substantial savings of roughly Rs 5.5 lakh for potential buyers.
Furthermore, the ripple effect of this tax reduction is expected to extend to other hybrid models in the market, such as the Grand Vitara, Toyota HyRyder, and Honda City Hybrid. For instance, the top-end Alpha Plus DT Hybrid variant of the Grand Vitara, currently priced at Rs 20.09 lakh ex-showroom, could see a decrease of approximately Rs 5.5 lakh with the proposed GST reduction.
Similarly, models like the Toyota HyRyder and Honda City Hybrid are poised to benefit from lower taxes, leading to significant savings for consumers. Overall, Gadkari’s proposal seeks to incentivize the adoption of hybrid vehicles and promote environmentally friendly transportation alternatives nationwide.
