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GST on Hybrid Cars

The latest news is that the government are considering a reduction in the rate of the Goods and Services Tax (GST) levied on hybrid cars. This has led to some automobile manufacturers being unhappy because it will affect the sales of petrol and diesel cars. Understandably, this will affect those manufacturers who have decided to sell only petrol, diesel, and electric cars and who do not have a single hybrid car in their portfolio. The proposed reduction in the GST will bring the prices of regular cars and hybrid ones very close or even on a par with each other.

There are quite a few reports trickling in from across the world which suggest that the sale of electric cars is declining, starting with the United States of America, which was one of the biggest electric vehicle (EV) markets. Even markets like Europe and now even Australia have Tesla cars sitting in the docks because there are no takers for those cars.

At the moment, the solution seems to be plug-in hybrid till such time that hydrogen-powered cars become feasible. Most of the manufacturers are backtracking on the cut-off dates when they had said they would completely stop the manufacture of internal-combustion engine (ICE) cars and make only EV.

Apropos of the tragic incident in May wherein a 17-year-old boy killed two pedestrians, I would blame the parents more than the boy for allowing him to drive such a powerful car at his age. My advice to parents is: however rich you be, please give your young child a safe and small car to start with. Once they gain some experience and improve their driving skills, let them graduate to a bigger and better one. The simple fact of the matter is that one does not require much skill to drive a car in a straight line and in favourable circumstances; it is when things go awry and there is an emergency that one needs to make a split-second decision and take action to avoid a mishap. That is when one’s driving skill and experience come into play.



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About the author: Aspi Bhathena



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