VAT on hybrid vehicles in Delhi cut to 5 pc

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SME Times News Bureau | 12 May, 2016
In a bid to reduce the air pollution in the capital, the Delhi government said on on Wednesday it was reducing the VAT (Value Added Tax) on hybrid cars and battery-operated vehicles from 12.5 percent to 5 percent.

"Delhi government is committed to reduce the air pollution in the city and support eco-friendly mode of transport. This will bring relief to a large number of people earning livelihood through e-rickshaws", said an official statement from the Delhi government.

With the reduction in VAT, there would be a tax rebate of lakhs of rupees to the buyers of hybrid cars.

"It is expected that a large number of consumers will shift from petrol/diesel vehicles to hybrid vehicles, thereby bringing down vehicular emission," the statement added.

It said the government was committed to making VAT rates the lowest in the country.

"In the last financial year, VAT on timber was reduced from 12.5 percent to 5 percent. In the current financial year, the VAT on a number of commodities including marble, sweets, namkeens, school bags, footwear and readymade garments has been reduced significantly," it said.