LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Hike in cess to impact growth of global models in India: Honda

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Sun, Aug 13, 2017
03:20 pm
PTI
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

The move to hike ceiling of cess on large cars and SUVs to 25 per cent under the new GST regime would impact growth of advanced global models in India and could come in the way of the country becoming global hub for automobile production, according to Japanese auto major Honda.

The company, which operates in the country through a wholly-owned arm Honda Cars India Ltd (HCIL), said the move is a "big disappointment" and it will "isolate India as a market with too much bias towards small cars".

HCIL President and CEO Yoichiro Ueno said the company had 'sincerely welcomed' the tax reform achieved through GST implementation from July 1 with a confidence that it would be a big boost for the automobile industry in India.

"However, the latest government move to increase the ceiling on the additional cess on automobiles from 15 per cent to 25 per cent on larger cars and SUVs, is a big disappointment," he said in a statement.

Ueno further said: "Such a move will impact the growth of advanced global models in India and will isolate India as a market with too much bias towards small cars." Currently, large cars and SUVs attract top GST rate of 28 per cent with a cess of 15 per cent. However, earlier this month the GST Council approved a proposal to hike cess on them to 25 per cent.

The Indian automobile industry is moving towards globalisation in emission norms and safety standards. But too much focus on small cars and the tax benefits to small cars will isolate India from the global automobile trends, he added.

"If vehicles produced in India are very different from global trend, it will also impact the development of the Indian automobile industry. It makes export of both CBU vehicles and auto components more difficult and poses hurdles to India in the way of becoming global hub for automobile production," Ueno said.

A lot of models which are classified as entry segments in other countries are regarded as luxury models in India just because it is over four meters in length, he added.

Ueno also asked the government to re-consider high level of taxation on hybrid vehicles saying these are advanced and environment friendly automobiles.

"As per the new tax structure, hybrid vehicles will be taxed as per the conventional engine models. This will pose a fresh challenge to our intention to popularize this environment friendly technology in India," he said.

While the government has announced its commitment to electric vehicle (EV) technology and also extended it tax benefit under GST, its implementation will require significant infrastructure development over the next decade or so, Ueno added.

"We feel that support to HEV (hybrid electric vehicles) will make HEV more attractive to customers and prepare them for adopting EV technology till infrastructure is ready," he said.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

LATEST NEWS

ICSE Class 10, Class 12 exam 2021: After CBSE cancels Class 10 exam, CISCE to soon take decision on ICSE board exams 2021

Anil Singhvi’s Strategy April 15: Day support zone on Nifty is 14,450-14,500 & Bank Nifty is 31,100-31,300

Infosys employee count - Up 7 pct YoY even as attrition picks up to 15.2 pct on-quarter basis

Asus ZenBook Duo (UX482) review: Decent dual-screen laptop, good performer

CBSE Class 10 exam 2021 evaluation criteria: EXPLAINED! Here is how board will promote Class 10 students

Stocks in Focus on April 15: Infosys, Tata Metaliks, NFL, AB Capital to Bharti Airtel; here are the 5 Newsmakers of the Day

Gujarat Board Latest Exam News: Will GSHSEB POSTPONE HSC SSC exams? Class 10, class 12 board exam candidates, DON'T MISS to check details here

BIG - CBSE Board Exams 2021 - Class 10th boards CANCELLED, Class 12th postponed - Get FULL DETAILS here

PUBG Mobile 1.4 beta update: Check invitation code, new features, Godzilla vs Kong collaboration, APK download link and more

THIS WhatsApp forward claiming to register for COVID-19 vaccine is fake - Check all details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved