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:
| Benefits of Hybrid Vehicles:
·        Improvement in fuel efficiency ·        Reduced consumption of fossil fuel ·        Lower battery usage compared to Battery Electric Vehicles (BEVs). ·        Lower emissions contributing to better air quality. ·        Regenerative braking: Captures energy during braking to recharge the battery, enhancing efficiency. |
