Budget 2020: SIAM seeks incentive-based scrappage policy, GST rate cut
Seeking a turnaround in fortune, the auto industry has been seeking government support and reduce the burden of transition to BS-VI with lower GST rate
NEW DELHI: Auto industry body SIAM on Monday urged the government to announce an incentive based scrappage policy ahead of the Budget, while also seeking a reduction in GST on BS-VI vehicles to 18 per cent.
Society of Indian Automobile Manufacturers (SIAM) also suggested Finance Minister Nirmala Sitharaman to increase budget allocation for internal combustion engine (ICE) bus procurement by state transport undertakings.
“As SIAM, we have urged the Finance Ministry to consider announcing an incentive based scrappage policy and also increase Budget allocation for ICE bus procurement by State transport undertakings,” SIAM President Rajan Wadhera said in a statement.
He further said increased cost of BS-VI vehicles may effect demand.
“Hence, we have also requested government to reduce GST rates for BS-VI vehicles effective April 1 from 28 per cent to 18 per cent,” Wadhera added.
From April 1, India will transition to stricter emission norm BS-VI from the current BS-IV. As per industry estimates, BS-VI vehicles are expected to be at least 10 per cent costlier.
The Indian auto industry has been going through a prolonged slump, recording its worst-ever sales decline in two decades in 2019, with an unprecedented slowdown hampering vehicle offtake across segments.
Overall, wholesale of vehicles during the year across categories, including passenger vehicles, two-wheelers and commercial vehicles, saw a decline of 13.77 per cent in 2019 at 2,30,73,438 units as against 2,67,58,787 units in 2018.
Seeking a turnaround in fortune, the auto industry has been seeking government support and reduce the burden of transition to BS-VI with lower GST rate.
Source- Business Standard.
The post Budget 2020: SIAM seeks incentive-based scrappage policy, GST rate cut appeared first on GST Station.
Click here for more...
from #Bangladesh #News aka Bangladesh News Now!!!