No revision in cess on hybrid cars, small cars: FinMin

Demand for hybrid cars are on a decline since July 1 when companies raised prices by as much as 20%

After the GST Council empowering the Centre to bring an amendment in the compensation law to increase ceiling on cess on the luxury cars, infuriating auto companies, the finance ministry on Thursday ruled out lowering cess on hybrid luxury cars. Demand for hybrid cars has been on the decline ever since GST was rolled out in July.

A key finance ministry official said there would not be any downward revision in GST rates or cess for hybrid cars.

He also tried to allay fears of auto industry over imminent hike in ceiling on cess on luxury cars from 15 per cent to 25