The cess is likely to increase prices of buses and may hamper public transport, automobile makers said. When contacted, the Society of Indian Automobile Manufacturers (SIAM) said the move would hamper public transport. “Government has been speaking about expanding public transport in the country to reduce air pollution. The need of the hour is public transport and higher tax would lead to rise in bus prices thus impacting demand, he added. The tax incidence on hybrid vehicles will go up to 43% from the current effective tax rate of 30.3%.

Source: Mint June 29, 2017 14:37 UTC