No Registration Tax Exemption on Toyota Innova Hycross and Maruti Invicto in UP! Here's the Reason
KEY HIGHLIGHTS
- Uttar Pradesh may restrict tax exemption to FAME II criteria.
- Premium hybrids like Maruti Invicto and Toyota Innova Hycross might get excluded.
- FAME II subsidy guidelines limit eligibility for expensive models.
Hybrid Vehicle Tax Exemption: If you are planning to rush towards the showroom to buy premium hybrids like Maruti Invicto and Toyota Innova Hycross, availing of the recently announced tax sop in Uttar Pradesh. Stop! Yes, you read right and we are saying this because these cars don't qualify for subsidy on various grounds even according to the Central FAME II subsidy.
According to a recent report, the Uttar Pradesh Government is set to come up with a new document mentioning the eligibility criteria for hybrid cars which will get tax exemption in the state. With this new catch, the premium hybrid options may get out of the subsidy eligibility criteria. Find out more details about this update below. Also, join our 91Wheels WhatsApp Channel to stay updated on the latest automotive news.
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Why No Benefits on Innova Hycross and Invicto?
The Uttar Pradesh State Transport Authority has clearly mentioned that the tax waiver will be available for vehicles that fulfil the eligibility under the Centre's FAME II scheme. The respective state authorities have talked to a bunch of beneficiary OEMs and other stakeholders about this matter. Automakers like Honda, Toyota Motor and Maruti Suzuki are the ones who will benefit the most if this tax sop is implemented for all the hybrids in their portfolio. However, there is doubt about the eligibility of some premium models in each carmaker's lineup.
FAME II Subsidy Doesn't Allow...
The Central FAME II subsidy guidelines mention that electric and hybrid vehicles with a price tag of more than 20 lakh are not eligible to get the subsidy. The FAME II has benefitted around 55,000 EVs and hybrid vehicles (majorly commercial). If the recently announced registration tax exemption on hybrid vehicles in UP will align with the FAME II guidelines. It will eventually throw premium offerings like Invicto and Innova Hycross out off the list. On the other hand, offerings like Grand Vitara, Toyota Hyryder and Honda City Hybrid will fulfil the eligibility.
The Hot Debate on Tax Reduction on Hybrids
There is debate going on at the central level to significantly reduce the GST on hybrid vehicles. Meanwhile, the Uttar Pradesh government came up with a state subsidy announcing the registration tax exemption on hybrid vehicles. Notably, electric vehicles buyer pay only 5 per cent tax while hybrid vehicle buyers get no benefits and pay 43 per cent tax. However, at the centre, this matter is currently on hold. We hope that respective authorities will announce a piece of good news for all hybrid buyers soon.
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Verdict
The recent confusion over hybrid vehicle subsidies in Uttar Pradesh highlights challenges and discrepancies between state and central policies. While the intent to promote eco-friendly cars is clear, the exclusion of premium models like Maruti Invicto and Toyota Innova Hycross due to eligibility criteria under FAME II complicates consumer choices and undermines subsidy effectiveness.
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