Karnataka plans to offer tax waivers on hybrid cars

Karnataka will become the second Indian state, after Uttar Pradesh, to offer tax incentives on hybrid vehicles.

According to a media report, the government of Karnataka plans to offer tax waivers on hybrid cars while also offering incentives for EVs. 

The report states that, as per the draft policy, the government aims to reduce road tax and registration charges for hybrid cars costing less than US$30,000.

Besides, the state government also plans to offer incentives of up to 25% on capital investments by EV makers. It proposes financial incentives ranging from 15% to 25% of the investment made by the companies in fixed assets.

The government will also provide similar incentives to EV component makers as well as manufacturers of battery components and EV chargers.

If the draft policy is approved, Karnataka will become the second Indian state, after Uttar Pradesh, to offer tax incentives on hybrid vehicles.

Source: Reuters