In a major boost to eco-friendly hybrid cars, the government is planning to slash excise and customs duties on such vehicles. The move aims at encouraging the use of alternative sources of fuel. At present, Honda Civic is the only hybrid version in the country. Several other manufacturers like Mahindra and Tatas are planning to join the race soon.
Policy makers are examining the proposal to encourage use of such cars that run both on fossil fuel and electric battery in the country, an official said. As per the proposal mooted by the Department of Heavy Industries, excise duty on such cars should be reduced to 12% from existing 14%. It has also demanded a reduction in customs duty which is over 100% on such imports.
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