In a major move to promote eco-friendly transportation, the Government of Uttar Pradesh has announced a complete waiver of registration tax on hybrid cars.

Uttar Pradesh joins Chandigarh in providing subsidies for hybrid vehicles, impacting popular models such as the Honda City, Toyota Innova Hycross, Maruti Invicto, Toyota Urban Cruiser Hyryder, Maruti Grand Vitara, and Toyota Camry, among others. Let’s dive into the details of this exciting new hybrid tax exemption rule.

🚗 Uttar Pradesh Hybrid Tax Exemption: Benefits of up to ₹3 Lakh

This new policy aims to make hybrid cars more affordable by reducing the registration fees, which can save buyers up to ₹3 lakh.

Hybrid Tax Reduction:

Previously, Nitin Gadkari, Minister of Road Transport and Highways, had suggested a reduction in GST on hybrid vehicles from 28% to 12%, which could have offered up to ₹7 lakh in savings on models like the Innova Hycross and Maruti Grand Vitara. However, this proposal was declined by the Ministry of Finance.

State-Level Subsidy:

The Uttar Pradesh government has now introduced a state-level subsidy on the registration of hybrid vehicles. As part of its 2022 EV policy, which initially waived registration fees for electric vehicles, the state government has extended this benefit to hybrid vehicles.

Honda City Hybrid Tax Reduction:

Initially, the government has included all models priced between ₹10 lakh to ₹1 crore for this rebate, with potential amendments expected in the future. This tax reduction applies to all models registered until October 2025. Previously, the registration charge on any vehicle (petrol/diesel/hybrid) costing above ₹10 lakh was capped at 10%.

📈 Savings on Popular Models:

Model Name Ex-showroom Price Savings
Toyota Innova Hycross/ Maruti Invicto ₹25.31 – ₹30.98 lakh ₹2,53,100 – ₹3,09,800
Maruti Grand Vitara/ Toyota Urban Cruiser Hyryder ₹16.66 – ₹19.97 lakh ₹1,66,600 – ₹1,99,700
Honda City e
₹19.10 – ₹20.65 lakh ₹1,91,000 – ₹2,06,500

🌍 Other States Hybrid Tax Exemption: Chandigarh

Before Uttar Pradesh, Chandigarh was the first state/union territory to provide hybrid tax exemptions. This initiative aimed to position Chandigarh as a ‘model EV city’ and encourage cleaner emission technology.

Initially, the registration fee was completely waived for all hybrid models sold between March 2023 and March 2028, including cars priced above ₹17 lakh and below ₹1 crore. However, amendments were later introduced, and currently, the Chandigarh Regional Transport Office offers up to 50% tax exemption on hybrid models priced below ₹20 lakh (ex-showroom).

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