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ZIGWheels: Latest News – Movies, Photos about ZIGWheels, The Economic Times
Wikileaks Unveils – Vault 7: The Largest Ever Publication Of Confidential CIA Documents; Another Snowden Emerges, Zero Hedge
What You Learn Driving the two thousand seventeen Mazda CX-5
What Does That Light on My Dash Mean? » News
VW recovers from emissions scandal as European car sales hop 9% in April, The Independent
Movie: Albuquerque teenage leads police on wild car pursue across town, KRQE News 13
UK Car Emissions Testing
Transportation Sector, Center for Climate and Energy Solutions
Title VII of the Civil Rights Act of 1964
Thieves arrive in stolen vehicle, steal SUV from Greenfield dealership, almost hit police squad on way out
There Is Now A Vending Machine For Luxury Cars, Zero Hedge
The Getaway Car
The CAR T-Cell Race, The Scientist Magazine
The car models affected by Takata airbag recall Yahoo7 News
car news australia
GST Effect: Why The High GST Rate On Hybrid Cars Makes Sense
GST Effect: Here Is Why The Government Has Enlargened Tax Rates For Hybrids Under GST
India has just witnessed the opening of a fresh chapter in the economy with a fresh taxation scheme coming into place. The Goods and Service Tax (GST) system of taxation, an economic reform of sorts, has been spinned out from embarking today, 1st July 2017. The fresh tax rates will do away with Excise duties and VAT and substitute it with one single tax slab and an extra cess.
The GST system basically has four taxation rates for everything that is taxable in the country – Five, 12, eighteen and twenty eight percent. Cars, as a entire, will be taxed under the highest tax slab of twenty eight percent, but when divided into categories based on length, engine capacity and powertrain type, will attract a cess over and above the 28% rate.
Cars measuring lesser than 4-metres see a decrease in taxation rates inbetween 1.7 percent and Two.Five percent. Cars longer than 4-metres see a decrease in taxation inbetween 8.6 and twelve percent. Electrified cars see a decrease of 7.Five percent. So everything looks good for the automotive sector and car buyers right? Wrong!
There is one segment of cars which would be affected pretty badly. That is the Hybrid segment – the only segment which would see a price increase post implementation of GST. Does India not want to shift to greener mobility?
Global shift towards green mobility:
Car manufacturers, environmental agencies and most governments around the world have realised that green mobility is the future, and is encouraging the use of hybrids and electrical cars in every possible manner.
In the American market, buyers of plug-in hybrids benefit from a tax credit ranging inbetween $Two,500 and $7,500 depending on the size of the battery in the car, and a few states in the U.S provide extra benefits to electrical car owners. In the U.K, the government provides a grant of up to Five,000 GBP on electrical cars and plug-in hybrids, alongside other benefits like exemption from congestion charges, etc.
Why then is India discouraging hybrids? Or is it?
India on the other mitt, judging by the taxes levied by GST on hybrid cars, seems to be discouraging car buyers from purchasing these green cars.
The BMW i8 is the Hybrid which would suffer the most, as the fresh forty three percent tax rate would see its price enlargened by almost Rs forty five lakh. The Volvo XC ninety Hybrid would cost almost Rs seventeen lakh more than it does now. The Honda Accord Hybrid, Toyota Camry Hybrid and Toyota Prius would see an increase of Rs 8-10 lakh. Diesel variants of the Maruti Suzuki Ertiga and Ciaz tooled with SHVS tech will see a price increase of up to Rs 1.Five lakh.
There are very few hybrids on sale in India right now, and all of them already sell in dismal numbers. Honda sold only one unit of the Accord in April and none in May.
Toyota sold only one hundred thirteen units of the Camry in April and one hundred nineteen in May, and it is safe to assume that the Hybrid variants of the Camry would have clocked just single digit sales. With the high tax rates being levied on these Hybrids now, sales can only be expected to go down.
If the high GST rates for hybrids leave you confused and wondering why the Indian government is not doing enough to promote green cars, let me remind you of ‘FAME’.
According to the Press Press Information Bureau, ‘FAME India Scheme [Quicker Adoption and Manufacturing of (Hybrid &) Electrical Vehicles in India] was implemented with effect from 1st April 2015, with the objective to support hybrid/electrical vehicles’ market development and Manufacturing eco-system.
The scheme has four concentrate areas, i.e. Technology development, Request Creation, Pilot Projects and Charging Infrastructure. Phase-I of the scheme was implemented over a period of two years embarking, 1st April 2015. The scheme was extended in March this year.
So the Indian government too had supported the sale of green cars for a while. But why are they stopping it now?
India’s direct budge towards electrified cars:
Well, India isn’t truly cutting support for green cars, but only for hybrids. The government still is supporting electrified cars and will proceed to incentivise electrical cars.
While most countries leisurely climb the ladder of green mobility by promoting hybrids very first, then plug-in hybrids, and eventually all-electric cars, it seems like the Indian government is thinking futuristically, which is a very good thing indeed.
The GST scheme imposes 7.Five percent lesser taxes on electrical cars, making it very clear that the government is promoting electrical cars. This stir by the government is worth applause, as it takes India to the all-electric car party earlier than expected.
Countries planning to ban fossil fuel-powered cars:
There are fairly a few countries planning to downright switch to electrical cars. Netherlands and Norway, both plan to totally phase out cars using petrol/diesel/CNG/LPG engines by 2025. Norway commenced its journey of promoting electrical cars back in 1990, and they plan to go entirely electrified by 2025. It took this European country thirty five years to do this.
Norway is a country with a population of Five.Nineteen million (51 lakhs), whereas India has a population of 1.Trio billion (130 crores). If India desired to do what Norway did, it would take a pretty long time. Now, we all know that the future of automobiles lies in electrical cars, so India would need to make a commence if it wished to get there some day.
The Indian government had earlier this year exposed plans of having only electrical cars on sale by 2030. While this is indeed a good plan for the environment and the electrified car manufacturing segment, on the entire, it certainly is over-ambitious when one considers our market size and requirement.
The Indian government is going the extra mile to promote electrified cars. In 2016, Indian Prime Minister Narendra Modi met Tesla CEO, Elon Musk at the company’s Gigafactory and later, Indian Union Transport Minister Nitin Gadkari visited the same facility and met top officials of the company.
Mr. Gadkari even invited Tesla to set up a manufacturing plant in India and showcased promise in providing land for the plant near any of the major ports of the country which would help Tesla with exports. He also hinted at the possibility of a Joint venture with an Indian manufacturer.
Tesla officials said it would be considered at the right time in the future and seems like they are indeed taking it earnestly. Tesla has been in negotiations with the Indian government to loosen import duties on their cars until a Tesla Gigafactory can be built in India.
Is the reduction of taxes on electrified cars enough?
The reduction of taxes on electrical cars and increase in taxes on hybrid cars, therefore, seems to be part of the government’s plan to electrify the automotive industry. Industry analysts and green mobility experts however feel it just isn’t enough.
After the GST percentages came out last month, a few industry experts and analysts spoke up telling that GST was the flawless chance to promote electrical vehicles. While the government has done that by reducing tax rates, the experts feel that the government should have imposed zero taxes on electrified cars until the market has gained significant momentum.
Do any other countries have zero taxes on electrified cars?
The Norwegian government had introduced such incentives right from the time they began their campaign for electrical cars. Back in 1990, they had exempted electrical cars from purchase/import taxes, and in two thousand one they further incentivised the purchase of an electrified car by exempting it from the twenty five percent value added tax (VAT) on purchase.
While the forty three percent GST on hybrids might kill the breed in India, it just might be an chance for manufacturers to step up the game and develop electrified cars. There were reports of BMW seeking more clarity from the Indian government regarding GST on hybrids before considering their launch in India.
However, it might make more sense for BMW and other manufacturers now, to skip hybrids and bring in pure-electrics, like the BMW 3-series electrical which is to be unveiled in September at Frankfurt, and of course the upcoming Tesla Model Trio.
This budge by the Indian government will surely bring in an influx of electrified cars, in the near future. Until then tho’, it is the Mahindra e2o Plus, e-Verito and e-Supro Three, which would keep the electrified car market going in India.
GST Effect: Why The High GST Rate On Hybrid Cars Makes Sense
GST Effect: Here Is Why The Government Has Enlargened Tax Rates For Hybrids Under GST
India has just witnessed the opening of a fresh chapter in the economy with a fresh taxation scheme coming into place. The Goods and Service Tax (GST) system of taxation, an economic reform of sorts, has been spinned out from beginning today, 1st July 2017. The fresh tax rates will do away with Excise duties and VAT and substitute it with one single tax slab and an extra cess.
The GST system basically has four taxation rates for everything that is taxable in the country – Five, 12, eighteen and twenty eight percent. Cars, as a entire, will be taxed under the highest tax slab of twenty eight percent, but when divided into categories based on length, engine capacity and powertrain type, will attract a cess over and above the 28% rate.
Cars measuring lesser than 4-metres see a decrease in taxation rates inbetween 1.7 percent and Two.Five percent. Cars longer than 4-metres see a decrease in taxation inbetween 8.6 and twelve percent. Electrified cars see a decrease of 7.Five percent. So everything looks good for the automotive sector and car buyers right? Wrong!
There is one segment of cars which would be affected pretty badly. That is the Hybrid segment – the only segment which would see a price increase post implementation of GST. Does India not want to shift to greener mobility?
Global shift towards green mobility:
Car manufacturers, environmental agencies and most governments around the world have realised that green mobility is the future, and is encouraging the use of hybrids and electrical cars in every possible manner.
In the American market, buyers of plug-in hybrids benefit from a tax credit ranging inbetween $Two,500 and $7,500 depending on the size of the battery in the car, and a few states in the U.S provide extra benefits to electrical car owners. In the U.K, the government provides a grant of up to Five,000 GBP on electrified cars and plug-in hybrids, alongside other benefits like exemption from congestion charges, etc.
Why then is India discouraging hybrids? Or is it?
India on the other forearm, judging by the taxes levied by GST on hybrid cars, seems to be discouraging car buyers from purchasing these green cars.
The BMW i8 is the Hybrid which would suffer the most, as the fresh forty three percent tax rate would see its price enlargened by almost Rs forty five lakh. The Volvo XC ninety Hybrid would cost almost Rs seventeen lakh more than it does now. The Honda Accord Hybrid, Toyota Camry Hybrid and Toyota Prius would see an increase of Rs 8-10 lakh. Diesel variants of the Maruti Suzuki Ertiga and Ciaz tooled with SHVS tech will see a price increase of up to Rs 1.Five lakh.
There are very few hybrids on sale in India right now, and all of them already sell in dismal numbers. Honda sold only one unit of the Accord in April and none in May.
Toyota sold only one hundred thirteen units of the Camry in April and one hundred nineteen in May, and it is safe to assume that the Hybrid variants of the Camry would have clocked just single digit sales. With the high tax rates being levied on these Hybrids now, sales can only be expected to go down.
If the high GST rates for hybrids leave you confused and wondering why the Indian government is not doing enough to promote green cars, let me remind you of ‘FAME’.
According to the Press Press Information Bureau, ‘FAME India Scheme [Quicker Adoption and Manufacturing of (Hybrid &) Electrical Vehicles in India] was implemented with effect from 1st April 2015, with the objective to support hybrid/electrified vehicles’ market development and Manufacturing eco-system.
The scheme has four concentrate areas, i.e. Technology development, Request Creation, Pilot Projects and Charging Infrastructure. Phase-I of the scheme was implemented over a period of two years commencing, 1st April 2015. The scheme was extended in March this year.
So the Indian government too had supported the sale of green cars for a while. But why are they stopping it now?
India’s direct stir towards electrical cars:
Well, India isn’t truly cutting support for green cars, but only for hybrids. The government still is supporting electrified cars and will proceed to incentivise electrical cars.
While most countries leisurely climb the ladder of green mobility by promoting hybrids very first, then plug-in hybrids, and eventually all-electric cars, it seems like the Indian government is thinking futuristically, which is a very good thing indeed.
The GST scheme imposes 7.Five percent lesser taxes on electrical cars, making it very clear that the government is promoting electrical cars. This budge by the government is worth applause, as it takes India to the all-electric car party earlier than expected.
Countries planning to ban fossil fuel-powered cars:
There are fairly a few countries planning to totally switch to electrified cars. Netherlands and Norway, both plan to fully phase out cars using petrol/diesel/CNG/LPG engines by 2025. Norway began its journey of promoting electrical cars back in 1990, and they plan to go fully electrical by 2025. It took this European country thirty five years to do this.
Norway is a country with a population of Five.Nineteen million (51 lakhs), whereas India has a population of 1.Trio billion (130 crores). If India desired to do what Norway did, it would take a pretty long time. Now, we all know that the future of automobiles lies in electrical cars, so India would need to make a begin if it dreamed to get there some day.
The Indian government had earlier this year exposed plans of having only electrical cars on sale by 2030. While this is indeed a good plan for the environment and the electrical car manufacturing segment, on the entire, it undoubtedly is over-ambitious when one considers our market size and requirement.
The Indian government is going the extra mile to promote electrical cars. In 2016, Indian Prime Minister Narendra Modi met Tesla CEO, Elon Musk at the company’s Gigafactory and later, Indian Union Transport Minister Nitin Gadkari visited the same facility and met top officials of the company.
Mr. Gadkari even invited Tesla to set up a manufacturing plant in India and demonstrated promise in providing land for the plant near any of the major ports of the country which would help Tesla with exports. He also hinted at the possibility of a Joint venture with an Indian manufacturer.
Tesla officials said it would be considered at the right time in the future and seems like they are indeed taking it gravely. Tesla has been in negotiations with the Indian government to loosen import duties on their cars until a Tesla Gigafactory can be built in India.
Is the reduction of taxes on electrified cars enough?
The reduction of taxes on electrical cars and increase in taxes on hybrid cars, therefore, seems to be part of the government’s plan to electrify the automotive industry. Industry analysts and green mobility experts however feel it just isn’t enough.
After the GST percentages came out last month, a few industry experts and analysts spoke up telling that GST was the ideal chance to promote electrified vehicles. While the government has done that by reducing tax rates, the experts feel that the government should have imposed zero taxes on electrical cars until the market has gained significant momentum.
Do any other countries have zero taxes on electrified cars?
The Norwegian government had introduced such incentives right from the time they began their campaign for electrical cars. Back in 1990, they had exempted electrical cars from purchase/import taxes, and in two thousand one they further incentivised the purchase of an electrified car by exempting it from the twenty five percent value added tax (VAT) on purchase.
While the forty three percent GST on hybrids might kill the breed in India, it just might be an chance for manufacturers to step up the game and develop electrified cars. There were reports of BMW seeking more clarity from the Indian government regarding GST on hybrids before considering their launch in India.
However, it might make more sense for BMW and other manufacturers now, to skip hybrids and bring in pure-electrics, like the BMW 3-series electrical which is to be unveiled in September at Frankfurt, and of course the upcoming Tesla Model Trio.
This stir by the Indian government will surely bring in an influx of electrified cars, in the near future. Until then however, it is the Mahindra e2o Plus, e-Verito and e-Supro Three, which would keep the electrical car market going in India.