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Calls for Indian government to lower taxes on biodiesel and hybrid cars

Indian union minister Nitin Gadkari will urge the country’s finance minister to reduce the goods and services tax (GST) rates on cars that run on biodiesel, as well as hybrid vehicles, according to Times of India’s The Economic Times.


GST rates announced last week would see hybrid cars and biodiesel vehicles attract similar tax rates to luxury cars and SUVs.


The Economic Times claims that the automobile industry is concerned about the new tax rates, believing they would disrupt plans by the Indian government to promote green vehicles.


“I will be meeting Arun Jaitley (India’s finance minister) soon to request that tax slabs for vehicles run on ethanol, biodiesel, bio-CNG should be reduced. I will also request him to reduce the tax rate on hybrid vehicles in order to tackle air pollution in the long run.” Gadkari told the Press Trust of India.


As well as offering green benefits, hybrid and biodiesel vehicles are seen as a valuable tool in helping India overcome its costly dependency on imported crude oil. 





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