<p>The government may bend and lower the rates on certain goods and services under the proposed GST regime.<br /><br />There was widespread view that high levies as decided by the Goods and Services Tax (GST) Council may cripple some sectors.<br /><br />The GST rates on motor vehicles, especially hybrid vehicles, insurance sector and, tourism and hospitality may see a revision in the coming days before the rules are finalised for its rollout on July 1, sources told DH.<br /><br />Vociferous demand has been made for a relook into the rates of hybrid vehicles which have been put under the highest tax plus cess bracket (28%+15%).<br /><br />The entire automobile industry has spoken in one voice against this with India’s largest carmaker Maruti Suzuki India’s chairman R C Bhargava calling the move “an inadvertent error” and “against government’s stated policy”.<br /><br />Maruti sells its Ciaz and Ertiga fitted with mild hybrid engine. Hybrid vehicles run on a mix of electric power and conventional fuel which emit less pollutants than cars that run purely on petrol and diesel.<br /><br />The move may also be opposed by the government’s think tank Niti Aayog which is working on a plan to promote electric vehicles. The government had recently roped in Niti Aayog to work on such a plan after it decided to switch most of its vehicles to battery power by 2030. However, the government had last month withdrawn a subsidy meant for mild hybrid vehicles which was aimed at promoting production of hybrid and electric vehicles.<br /><br />Sources said there may be a re-think on taxes on hybrid vehicles at par with the electric ones under the GST regime. Tax on electric vehicles has been kept at 12% under GST.<br /><br />Similarly, a 28% tax on five star hotels and room rentals above Rs 5,000 per night has been opposed by the hotel industry. The government’s policies, including a ban on sale of liquor within 500 metres of highways, have had an adverse impact on the tourism sector, said sources . The industry feels India’s taxes are far more than countries like Singapore, Thailand and Myanmar.<br /><br /></p>
<p>The government may bend and lower the rates on certain goods and services under the proposed GST regime.<br /><br />There was widespread view that high levies as decided by the Goods and Services Tax (GST) Council may cripple some sectors.<br /><br />The GST rates on motor vehicles, especially hybrid vehicles, insurance sector and, tourism and hospitality may see a revision in the coming days before the rules are finalised for its rollout on July 1, sources told DH.<br /><br />Vociferous demand has been made for a relook into the rates of hybrid vehicles which have been put under the highest tax plus cess bracket (28%+15%).<br /><br />The entire automobile industry has spoken in one voice against this with India’s largest carmaker Maruti Suzuki India’s chairman R C Bhargava calling the move “an inadvertent error” and “against government’s stated policy”.<br /><br />Maruti sells its Ciaz and Ertiga fitted with mild hybrid engine. Hybrid vehicles run on a mix of electric power and conventional fuel which emit less pollutants than cars that run purely on petrol and diesel.<br /><br />The move may also be opposed by the government’s think tank Niti Aayog which is working on a plan to promote electric vehicles. The government had recently roped in Niti Aayog to work on such a plan after it decided to switch most of its vehicles to battery power by 2030. However, the government had last month withdrawn a subsidy meant for mild hybrid vehicles which was aimed at promoting production of hybrid and electric vehicles.<br /><br />Sources said there may be a re-think on taxes on hybrid vehicles at par with the electric ones under the GST regime. Tax on electric vehicles has been kept at 12% under GST.<br /><br />Similarly, a 28% tax on five star hotels and room rentals above Rs 5,000 per night has been opposed by the hotel industry. The government’s policies, including a ban on sale of liquor within 500 metres of highways, have had an adverse impact on the tourism sector, said sources . The industry feels India’s taxes are far more than countries like Singapore, Thailand and Myanmar.<br /><br /></p>
