Five things India auto industry wants from the Budget.
New Delhi, Feb. 26 -- Reduce excise duty: The government should cut excise duties on cars to make them more affordable to consumers. Reduce the current excise duty to 10% from 12% on small cars and excise duty on big cars to 22% from 24% and 27%. The reduced duties in turn can be passed on and make the cars cheaper for customers.
Reduce Interest Rates: Majority, which is 85% of car buyers take loans to buy their coveted cars. With high interest rates, customers are putting off their purchases as cars turn expensive. Interest on Car loans are at 10.5-13%, for trucks it is 14-17%, and for bikes and scooters it can be as high as 22-25%.
Accelerated depreciation for commercial vehicles: To boost demand in the commercial vehicle market, the government could introduce a limited scheme of granting an accelerated tax depreciation of 50 per cent per annum for vehicles purchased during a specified period. A similar scheme when implemented in 2009 was met with positive demand.
Clarity on Goods and Service Tax: "The government should strive for early introduction of GST which would pave the way for rationalising the tax structure. Automotive industry involves large scale manufacturing at various levels, so there's an urgent need to streamline the taxation process in India while some faster reforms are needed to do away with multiple and overlapping taxes," said Gurupratap Boparai, CEO, Fiat India Automobiles.
Don't impose tax on SUVs: Don't kill the golden goose. SUVs are the only segment that is growing in India.
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|Date:||Feb 26, 2013|
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