Anticipated price cuts for the Toyota Innova HyCross Hybrid variants may not materialize, as the Finance Ministry is unlikely to discuss tax concessions for hybrid cars in the upcoming GST council meeting. Despite Union Minister Nitin Gadkari’s proposal to reduce GST on hybrid vehicles from 48% to 12%, the ministry, chaired by Nirmala Sitharaman, opposes these concessions, impacting the expected price reduction.
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Gadkari advocates for lowering GST on hybrids to promote eco-friendly transportation and reduce pollution. While carmakers like Honda, Toyota, and Maruti Suzuki are expanding their hybrid and electric vehicle offerings, the current GST of 28%, plus an additional 15% CESS on larger hybrid engines, remains a barrier. There is still hope for a future reduction in GST rates, aligning with government efforts to support cleaner automotive technologies.