In a surprising turn of events, the hopes of consumers for tax exemptions or relief on local Hybrid Electric Vehicles (HEVs) have been dashed with the unveiling of the new fiscal budget for 2024-25.
The Finance Bill 2024, specifically clause 73 of the 8th schedule, has struck down the previous provision that allowed a lower 8.5% General Sales Tax (GST) on locally assembled HEVs under the Sales Tax Act, 1990.
As a result, CKD (Completely Knocked Down) HEVs are now subjected to the standard vehicle GST rate of 25%.
Read More: Budget 2024-25: How much tax will you pay on your salary?
This revision has immediate repercussions for popular models like the Haval H6 HEV, Jolion HEV, and Corolla Cross HEV, all of which are expected to undergo substantial price increases. For instance:
- The Jolion HEV could see its price rise by Rs. 1,405,000 to Rs. 10,700,000.
- The Haval H6 HEV might experience a jump of Rs. 1,804,506, reaching a new price of Rs. 13,670,000.
- The Corolla Cross HEV’s price is estimated to increase by Rs. 1,429,000 to Rs. 10,828,000, with the HEV X variant likely rising by Rs. 1,497,000 to Rs. 11,346,000.
Moreover, vehicles like the Hyundai Santa Fe smart and Signature editions are also set to become more expensive, with anticipated price hikes of Rs. 1,975,000 and Rs. 2,235,000 respectively.
