NEW DELHI, Aug 25 (Reuters) – India is open to discussing a change in tax charges on vehicles, the nation’s income secretary stated on Wednesday, indicating receptiveness over negotiation on a long-standing request from automakers for decrease taxes.
India’s federal items and companies tax (GST) price on vehicles, together with automobiles, motorbikes and vehicles, is as excessive as 28%, on high of which different taxes are imposed by states.
Firm executives say that is making automobiles unaffordable for a lot of consumers, particularly as excessive uncooked materials costs and upgrades to fulfill more durable security and emission guidelines have already boosted costs.
“I might be very completely satisfied to have interaction with you to see what we will do even on (GST) tax charges, what’s the tinkering we will do to see to it that sure (car) segments get the encouragement they deserve,” income secretary Tarun Bajaj stated at a convention organised by the Society of Indian Vehicle Producers (SIAM).
Bajaj, nevertheless, stated he needed to raised perceive from automakers why car gross sales have been tepid over the previous couple of years and whether or not it was simply as a consequence of excessive taxes or different causes, and what might be accomplished to revive a sector which the federal government considers key to serving to it meet development targets.
Prices have surged over time and persons are discovering it more and more tough to afford a automotive, R.C. Bhargava, chairman on Maruti Suzuki (MRTI.NS), India’s greatest carmaker, stated through the occasion as he made a pitch for decrease taxes.
Progress in car gross sales has decelerated in India over the previous couple of years, first as a consequence of an financial slowdown in 2019 adopted by the pandemic since 2020. Extra just lately, points like a world scarcity of semiconductors have disrupted gross sales.
Auto corporations have for years lobbied for decrease GST tax charges, which they are saying might assist increase gross sales.
Reporting by Aditi Shah
Enhancing by Bernadette Baum
Our Requirements: The Thomson Reuters Trust Principles.