Under the new fiscal budget, the government levied a green tax on environmentally friendly automobiles, which caused a large increase in market prices.
Car dealers have demanded an immediate reversal of the ruling, citing the possible impact on the already troubled auto industry, according to information that leaked on Thursday.
Since the green tax was implemented, the cost of hybrid cars has increased by three to five percent.
A single hybrid car could cost up to Rs500,000 more due to the additional tax, according to representatives of the Car Dealers Association.
Dealers say there is little consumer interest and that showroom activity is still muted. They contend that the car industry will be further strained by the latest measure.
A sustainable future depends on the promotion of eco-friendly automobiles, according to Rana Kaleem of the Car Dealers Association. He emphasized the necessity of laws that support these initiatives rather than obstruct them.
Industry leaders think that increased tariffs on environmentally friendly vehicles will impede their uptake and have a detrimental impact on sales, despite the government’s declared commitment to giving priority to green transportation options.
