Industry Business: Stimulus, Tax Fit Out Required To Rev-Up Motorcar Sector

A Stimulant For The Business Is Needed At This Point To Support The Business

The recommendations for the budget 2019-20 comes as sales of volume driven traveler two-wheelers and cars still decline.

Evidently, off-take knowledge for could paints a grim image with domestic traveler cars' sales down 26.03 %  to 147,546 units.

Notably, the crucial producing sector has been bent via consumption lag, particularly within the rural areas together with finance price.

Industry Business Body Society of Indian Automobile makers -- have counseled a discount in GST charge per unit from 28 to 18 %.

"A stimulant for the business is needed at this point to support the business. we tend to ask for an associate imperative reduction in GST charge per unit from 28 to 18% and a scrappage policy for older polluting vehicles."

Besides, the business body has demanded a discount on company charge per unit for all corporations from 25%.

It has conjointly wanted a weighted deduction for R&D activities ought to be "reinstated at 200% until such time the company tax rates area unit reduced to 25%".

"With the budget announcement of the new government expected early Gregorian calendar month, the business has hunted for some sops to reverse the trend and convey in positive momentum through some short term measures like reduction in tax part in GST," aforementioned Sridhar V., Partner, Grant architect Bharat LLP.

"Another demand except for the long run is for a scrappage policy. this is often expected to stimulate demand over an extended amount of your time primarily within the business vehicle phase. One different expectation from the world is the continued pay on the road below and strengthening the road network."

"The Budget ought to conjointly set out with associate investment and upgradation arrange, aligned with an overall business roadmap, for setting and scaling up autonomous analysis and testing agencies," Mishra aforementioned.

Apart from cars, the opposite sub-segments of traveler vehicles is additionally witnessing a worsening.

Similarly, the info is known that three-wheelers' sales decelerated. The segment's offtake went down by 5.76 % to 51,650 units throughout the month in thought.

As per the info, total sales of the Indian automobile sector declined by 8.62 % throughout could two019 to 2,086,358 units across segments and classes.