India Considering Tax Cut On Hybrid Vehicles

India is considering a cut in the goods and services tax (GST) rate on hybrid vehicles, Transport Minister Nitin Gadkari said on Thursday.

The government's plan comes as the auto sector battles with a steep drop in sales due to feeble consumer demand, with several top automakers and component manufacuturers cutting production and laying off employees.

The Business Standard newspaper had reported on Wednesday that the government was examining a 15 percentage point tax cut for hybrid vehicles.

(Reuters)