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.
The move could irk some local carmakers.
India’s combined sales and additional taxes on hybrid vehicles sales are as high as 4 per cent, based on the size of the car, compared with the highest rate of 50 per cent imposed on petrol and diesel cars. India taxes electric vehicles (EVs) at just 5 per cent.
