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:

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.

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