Govt working on linking vehicle tax with emissions, says official

The government is working towards establishing a correlation between a vehicle's fuel emission and the tax levied on it, a top official has said.

- SHALLY SETH MOHILE

In India, electric vehicles (EVS) attract a GST of 5 per cent, while hybrids incur a much higher 43 per cent. CNG-powered cars, too, come under the highest tax bracket.

"The point you have made is a relevant one of taxation rates having a correlation with the emission norms. We are working on it. We have data on it from other countries and we have data from the people sitting here and there's logic in it," said Arun Goel, secretary, Ministry of Heavy Industries. Goel was responding to a question during a panel discussion on why hybrids attract a high GST despite low emissions.