Key Points
NEW DELHI - India's trade department has backed lowering taxes on hybrid vehicles to help the transition to cleaner energy sources, following demands by Japanese car makers, five government and industry sources told Reuters...
India's combined sales and additional taxes on hybrid vehicles sales are as high as 43%, based on the size of the car, compared with the highest rate of 50% imposed on petrol and diesel cars..
The move could boost the prospects in India of Japan's Toyota Motor, the world's largest carmaker, which has been lobbying for months for lower taxes for hybrid cars, arguing such vehicles are far less polluting than petrol cars...
According to two government sources, India's trade promotion and industry ministry has asked the heavy industries ministry to "rationalise cess" on hybrid cars, two government sources said.. Cess is an additional tax typically levied on the sale of products identified as "luxury goods" by New Delhi..
In a letter written last month to Indian heavy industry secretary Kamran Rizvi, the country's trade promotion and industry secretary Rajesh Kumar Singh cited representation by a "foreign" carmaker that hybrids attract higher levies than electric vehicles..
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