The Uttarakhand government is considering offering a tax rebate on the registration of hybrid vehicles to promote eco-friendly transportation. Similar to electric vehicles, hybrid vehicles that run on both petrol or diesel and batteries may soon benefit from a reduction in the one-time registration tax. The proposal has been reviewed and will be presented in the upcoming cabinet meeting for approval.
How Will the Tax Benefit Work?
If the cabinet approves the proposal, the one-time tax on hybrid vehicles will be reduced. Currently, vehicles priced over ₹10 lakh are subject to a 10% one-time tax. Since hybrid vehicles typically cost around ₹18 lakh or more, the government may offer a 10% tax relief, making them more affordable for consumers.
Why is Uttarakhand Facing Revenue Loss?
At present, over 4,000 hybrid vehicles are registered in Uttarakhand. However, many residents prefer purchasing their vehicles from neighboring states like Uttar Pradesh, where hybrid vehicles enjoy significant tax exemptions. This has resulted in a loss of Goods and Services Tax (GST) revenue for Uttarakhand. To address this, the Transport Department has proposed the tax relief plan to the state government.
Also Read This – Uttarakhand Government Transfers Five IPS Officers, New Appointments Announced
Government’s Vision and Expected Benefits
The Transport Department believes that reducing the tax burden will encourage more people to buy hybrid vehicles within Uttarakhand. This initiative is expected to boost local vehicle sales, increase GST revenue, and contribute to reducing carbon emissions by promoting cleaner transportation options.
According to SK Singh, Joint Commissioner of Transport, the proposal has been forwarded to the government, and the final decision now rests with the cabinet.
