Budget Expectations 2019: What auto sector wants from Nirmala Sitharaman - Check wish list
The date i.e July 5 is almost here when Budget 2019 will be tabled in Parliament. This is the first full budget of Modi 2.0, and traders, industrialists, business associates and the likes are pinning high hopes on Nirmala Sitharaman & Team expecting that this budget will be a win-win for the government and businessmen too.
The date i.e July 5 is almost here when Budget 2019 will be tabled in Parliament. This is the first full budget of Modi 2.0, and traders, industrialists, business associates and the likes are pinning high hopes on Nirmala Sitharaman & Team expecting that this budget will be a win-win for the government and businessmen too. Amid various speculations from the Union Budget 2019, automobile sector too wants few things to be taken care of. Here are the expectations from the automobile industry:-
- Reduction in GST: Society of Indian Automobile Manufacturers (SIAM) has said that the entire automotive industry including all the players in the passenger car, commercial vehicle as well as two/three-wheeler manufacturers are totally united in seeking a reduction in the GST rate from 28% to 18% on vehicles. This was reinforced by Rajan Wadhera, President, SIAM.
- Support from Modi 2.0: SIAM says, "Automobile industry is looking up to Modi Government to provide urgent support to overcome this trying period and is equivocal in seeking this support from Government in the forthcoming Union Budget.
- Stimulus to propel growth: "The automotive industry is currently facing a daunting challenge of a deep slowdown that urgently needs some form of stimulus from Government to supplement the efforts being made by the industry in reversing the industry fortunes towards positive performance. Even in the past the Government has offered stimulus to propel growth and it has reversed the growth in the positive direction. In addition to the reduced demand today, new safety and emission norms that would come into play in the next few months would further drive up the cost of vehicles, leading to further pressure on demand. A reduction in the GST rates would go a long way in maintaining the price competitiveness of the industry and boosting the consumer demand."
- What Anand Mahindra wants from Budget 2019: Mahindra Group Chairman Anand Mahindra has said lowering GST on automobiles would help the economy, stating that the auto industry has a huge multiplier effect on small companies and employment.
- Rajeev Kapur, Managing Director, Steelbird Helmets: "As far as the helmet industry is concerned, GST shall not be levied on helmets as they are meant for safety. Helmets are life-saving device just like medicines. Therefore, just the way there is no GST on medicines so shall helmets be exempted. Moreover, unless helmets are exempted from taxes, prices will go up and the effort of the government to roll out the new ISI standard and mandatory use of ISI helmets will be defeated."
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