Nitin Gadkari states that tax on Hybrids should be reduced to 12 percent in the coming future

Nitin Gadkari, Minister of Road, Transport & Highways, at News18's Rising Bharat Summit 2024, on Tuesday said that the tax on hybrid vehicles should be reduced from the current 48 percent GST to 12 percent GST considering they are 60 percent electrically operated and deploy very minimum pollution.

Gadkari said that at present there is a 5 percent GST on electric vehicles and a 48 percent GST on hybrids. That number seems very unfair as Hybrids although not as clean EVs are far better for the environment than purely internal combustion-based vehicles. The Union Minister has said that this number should be reduced to just 12 percent soon as he intends to promote the sale of hybrid and electric vehicles.

He has also urged the Finance Minister to discuss this issue at the next GST Council meeting. Reducing the GST would benefit the industry, decrease imports, and lower pollution levels. The automotive industry is the highest GST contributor to the Indian government and boasts a vast export market encompassing renowned global brands.

Recently, India even outsold Japan in new car sales, securing the third position globally, behind only the USA and China. Gadkari firmly believes that within the next five years, India will become a hub for automotive manufacturing and reach the number one position.

The minister of MoRTH arrived at the event in a Toyota Innova with a flex engine. This engine can run on 100 percent petrol or ethanol fuel On average, it costs just Rs 25 per litre, making it a cost-effective and pollution-free alternative that reduces our reliance on imported fossil fuels. TVS, Bajaj, and Hero have also launched models with this flex-fuel technology. Additionally, auto rickshaws and even buses are being developed to utilize this technology.

Road Fatalities in India

Nitin Gadkari further addressed the topic of road accidents in India saying "Unfortunately the number of road fatalities has risen from 1.5 lakh to a staggering 1.65 lakh annually. Alarmingly, 65 percent of these victims belong to the 18-34 age group. The biggest problem we face is human behaviour and a careless attitude towards traffic rules."

To address this issue, the Ministry of Road, Transport & Highways is working with the media, conducting campaigns in schools, creating awareness programs, and striving to change people's mindsets. He further added, "Until people start following traffic signals, avoid using phones while driving, become more disciplined, and obey the rules, it will be impossible to stop these accidents".