India, April 22 -- As expected, the Government is now mulling a cut in taxes on hybrid vehicles - a little late in the day. The Minister for Road Transport & Highways has requested the Finance Ministry to consider reducing GST rates on hybrid vehicles to 5%. Currently, hybrids are clubbed with ICE and LPG/CNG that attract 28% GST and - depending on the engine displacement and ground clearance - an additional cess that can go up to 22%. Electric vehicles, on the other hand, attract a GST rate of 5% flat - no cess. Given the complex tax structure of GST overall, a relook at the rates to simplify them when a new government comes to power was due anyway.

When the GST regime was being introduced in 2018-19, OEMs lobbied the Government to equa...