The Government has provided conditional relief to individuals who had opened Letters of Credit to import hybrid vehicles before the interim budget. Financial Ministry officials said they would not be charged new taxes until March 16.
The decision to provide relief to the individual importers of hybrid vehicles came after a series of discussions with the Finance Ministry. The relief will apply to those who have ordered hybrid vehicles below 2,500cc engine capacity.
Accordingly, individual importers will not be able to transfer the vehicle for four years from the date of registration. The vehicle should be registered under the importer’s name.
In the interim budget presented to parliament on January 29, those importing hybrid vehicles were required to pay additional taxes of more than Rs 600,000.
The move drew protests from individual vehicle importers and car sale owners. However, no relief has been provided to car dealers.