Good News for Car Buyers: Uttar Pradesh Scraps Registration Tax on Strong Hybrids

The Uttar Pradesh government has waived the registration tax on strong hybrid cars, offering a significant boost for green vehicles. According to a recent circular, the state government has implemented a policy granting a 100 percent waiver on the registration fee for strong hybrid vehicles, effective immediately. This policy is set to benefit manufacturers like Maruti Suzuki, Toyota Kirloskar Motor, and Honda Cars India while also allowing customers to save up to ₹3.5 lakh on the purchase of these cars.

Financial Impact and Tax Details

Uttar Pradesh currently imposes an 8 percent road tax on vehicles priced below ₹10 lakh and a 10 percent tax on vehicles priced above ₹10 lakh (ex-showroom). Despite the tax waiver, the impact on the state exchequer is expected to be minimal due to the relatively low sales volume of hybrid vehicles.

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Benefiting Models

Maruti Suzuki offers the Grand Vitara and Invicto in the hybrid segment, while Toyota has the Hyryder and Innova Hycross. Honda's City Hybrid is also set to benefit from this new policy.

Previous Policies

This move follows last year's announcement by the Uttar Pradesh government, which provided a three-year exemption from tax and registration fees for electric vehicles (EVs). This exemption extends to five years for EVs manufactured within the state. Additionally, the government has relaxed the upper maximum expenditure limit on vehicle purchases.

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