Following UP’s tax waiver on hybrid cars, Karnataka is now aiming to reduce levies and give financial incentives to firms in the clean mobility space, which includes a significant cut for hybrid vehicles. This is as per a report by Reuters, citing a state government document draft.
- Hybrids vehicles under Rs 25 lakh could see tax waiver
- Incentives of up to 25 percent planned for investment in EVs by stakeholders
Karnataka aims to do away with road tax and registration charges for hybrid cars that cost less than 30,000 dollars (approximately Rs 25 lakh), versus 13 percent to 18 percent currently, as per the draft seen by the newswire. State road and registration taxes are charged on top of federal sales tax of 5 percent for EVs and up to 43 percent for hybrids.
The draft further noted that the state aims to bolster “clean mobility vehicle adoption,” which encompasses EVs, some hybrids and hydrogen-based vehicles. However, there is no deadline to finalise and unveil the EV policy.
Over and above this, Karnataka also aims to offer incentives ranging from 15 percent to 25 percent of the investment made by companies in fixed assets for EVs, such as land and machinery, for new factories or to expand existing ones. This will also be applicable to battery component makers or those who also make EV charging gear, it noted. The incentive will differ as per the investment size and numbers employed, the draft stated.
The state’s government has previously said it plans to raise up to 6 billion dollars in new investments through a clean mobility policy, but has not made any other details public. Reuters, however, could not elicit an official response from the state’s transport department.
Also See:
Toyota dealer sees 50 percent surge in hybrid sales post tax waiver in UP
