New Delhi, 19th May, 2017: The Society of Indian Automobile Manufacturers (SIAM) has welcomed the new GST Rates on automobiles.
“The rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a reduced overall tax burden in varying degree. This will pave the way for stimulating demand and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26”, said Mr. Vinod Dasari, President, SIAM. The Government has done well to ensure stability in taxation while at the same time moderating the taxes wherever they were too high, he added.
Differential GST for electric vehicles will also help electric mobility to gain momentum in India. We would have liked to see a similar differential duty on hybrid vehicles to continue.
“Government has always encouraged environmentally friendly technologies and with the current focus on reducing emissions of greenhouse gases and reducing carbon footprint one would have expected the lower taxation to continue on such vehicles in a technology agnostic manner, Mr. Dasari said.
“The inclusion of 10-13 seater vehicles used mainly for public transport in the same tax bracket as luxury cars with a 15% Cess is also unexpected and may merit a review”, said Mr. Dasari.
