The Indian Sugar Mills Association (ISMA) called for a change in the Goods and Services Tax (GST) rate applied on vehicles using flex fuels. The sugar industry body urged for flex fuel powered vehicles to be charged at the same GST rate as electric vehicles.
According to a PTI report, ISMA in it’s statement said that flex fuel vehicles (FFVs) are currently charged a GST at 28 per cent, while the electric vehicles are charged just 5 per cent GST. ISMA President Aditya Jhunjhunwala requested the Ministry of Road Transport and Highways to adopt a relaxed GST approach towards FFVs.
The association stated that to promote the method of blending ethanol and petrol for fuel, the ministry should look into making changes in the GST rates levied on FFVs. Flex fuel vehicles use a mixture of petrol and ethanol to power automobiles. Currently, India has achieved E10, which represents 10 per cent ethanol in petrol, and aims to achieve E20 by 2025.
Jhunjhunwala also noted that this move will help reduce India’s fuel bills and simultaneously control the transportation sector’s carbon emissions. He added, “We request parity in the GST rebate for FFVs,” and stressed that this move will help consumers to ‘embrace environmentally conscious choices without bearing disproportionate financial burdens’.
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