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Auto industry demands rationalization of tax, scrappage policy, Auto News, ET Auto


NEW DELHI: As Finance Minister Nirmala Sitharaman is on the brink of current her third Union Price range on February 1, the auto trade hopes it should help them in recovering from the pandemic-induced financial shock.

The Indian auto trade which has simply began to witnessing some restoration after months of low demand, first because of the Covid-19 lockdowns after which due to the pandemic-triggered financial disaster, desires rationalisation of tax construction and scrappage coverage.

Speaking to ANI, Satyakam Arya, MD and CEO, Daimler India, mentioned the tax on the car sector could be very excessive, and there’s a must deliver it down.

“We perceive that the federal government is hard-pressed on the revenues facet. We additionally really feel that that within the mid to long run authorities is okay at rationalising the tax construction. Presently, most automobiles, industrial automobiles and two-wheelers fall within the bracket of 28%. Tax on the car sector could be very excessive. It must be introduced down. The Scrappage coverage is the necessity of the hour. The federal government ought to announce this as early as doable. It would generate a number of demand,” mentioned Arya.

As per official knowledge, not a single automobile was offered final 12 months in April when the nation was in lockdown, which practically broke the spine of the car sector. It was solely within the festive months of October and November when the trade lastly noticed some optimistic progress in gross sales.

Speaking to ANI, Satyakam Arya, MD and CEO, Daimler India, mentioned the tax on the car sector could be very excessive, and there’s a must deliver it down.

Vivek Chaand Sehgal, Chairman, Motherson Group, hoped that the Finance Minister will include some form of aid for the trade to get well.

“Our economic system is simply recovering from the influence of the COVID-19 pandemic. The federal government had taken a number of measures to minimise the influence on companies from the pandemic. Hope that the Finance Minister will include some form of aid in order that trade can get well,” Sehgal acknowledged.

In response to Harsha Kadam, CEO Schaeffler India and president Industrial Enterprise, the price range is a chance to herald measures that may assist to spice up sustainable progress for the trade.

“The auto elements trade may also see extra investments if additional readability is offered on the Postal Life Insurance coverage (PLI) scheme introduced in 2020. Implementation of the scrappage coverage may also enhance gross sales that can profit the trade and atmosphere,” Kadam mentioned.

“From an general manufacturing trade perspective, stabilisation of uncooked materials costs is of significance to the trade, selling completed good exports will, in flip, enhance overseas change market reserve and be a optimistic step. The trade additionally requires some aid in customized duties particularly for uncooked supplies and different manufacturing components,” he added.



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