Bought A Hybrid Car? High Court Asks UP Govt To Refund Road Tax To Buyers
Back in July 2023, the Uttar Pradesh Government waived road taxes for all strong hybrid cars. This happened due to the legal battle of an automotive enthusiast, Piyush Bhutani, with the Uttar Pradesh Government. At the time, it was announced that all strong hybrid vehicles registered after July would have their road taxes waived. However, now, after the most recent order from the Allahabad High Court, the UP Government has been asked to refund the entire road tax amount paid by hybrid vehicle owners who purchased their vehicles before July 2023.
Allahabad High Court’s Order
The High Court of Allahabad has now ended the long-standing debate. It has stated that all strong hybrid vehicle owners who paid the entire road tax amount before July 2023 will receive refunds. Until now, there was no clarification as to whether buyers who purchased strong hybrid cars before July would receive a refund.
Why Did the UP Government Waive Road Tax on Strong Hybrids?
For those who may not be aware of why the Uttar Pradesh Government announced the waiving of road tax in July last year, here is a short story. It started with an automotive enthusiast and strong hybrid buyer, Piyush Bhutani. Last year, Bhutani bought not one but two hybrid cars.
When it came to paying road tax on these vehicles, Bhutani noticed a disparity in the UP Government’s EV policy. He highlighted that the state’s EV policy for EVs should also apply to strong hybrid models.
To address this, he had conversations with the transport commissioner and the RTO in Prayagraj, Uttar Pradesh. Unfortunately, his voice was silenced. With the help of another concerned customer, Abhishek Maheshwari, he took the matter to the Allahabad High Court.
After a lengthy debate, on July 5, 2023, the Allahabad High Court ruled that the state government would have to waive road taxes for hybrids as well. At the time, many people mistakenly believed this waiver for hybrids was due to UP CM Yogi Adityanath and Union Minister of Road Transport and Highways Nitin Gadkari.
However, this massive achievement was made possible by Piyush Bhutani and Abhishek Maheshwari. What’s even more impressive is that, due to this ruling, the UP Government had to extend its ₹1 lakh cash incentive, which it had offered to EVs, to hybrids and fuel cell vehicles as well.
Gadkari Has Been Very Vocal About Hybrids
Although the road tax waiver in Uttar Pradesh did not happen because of MoRTH Minister Nitin Gadkari, it must be mentioned that he has been very vocal about the tax disparity between strong hybrid vehicles and EVs in India.
Over the years, he has advocated for strong hybrid vehicles and has even asked Finance Minister Nirmala Sitharaman to reduce the GST on hybrids from 48 percent to 12 percent. However, despite multiple requests, the GST Council has overruled the possibility of this happening.
Hybrids vs. EVs: Who Is Winning the Race?
Although it seemed like EVs would be the future of mobility in India and globally, it has now become evident that EVs are losing traction for various reasons. The sales of electric cars in India and other developed markets have been declining, while the popularity of strong hybrid vehicles is rising.
Many car buyers now prefer strong hybrid vehicles because they do not cause range anxiety and are not as expensive as EVs. Additionally, poor charging infrastructure has become a key reason for people avoiding electric cars. Moreover, hybrids offer superior mileage, which is a significant selling point in India.