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.


  • 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.
Benefits Challenges
Reduced reliance on fossil fuels Lower fuel efficiency
Fuel flexibility for drivers Availability of ethanol
Improved acceleration Higher upfront cost
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