In a bid to boost car sales, the government is considering reviewing taxes on car sales. Reduced prices can help to recover the auto sector from the pandemic.
If you want to buy a new car, the government may surprise you ahead of Diwali. The government is considering a tax reduction to help cars become more affordable. The news comes after car sales in several segments are slowing down.
In the 61st Annual Meeting of the Indian Automotive Manufacturers Association (SIAM), Revenue Secretary Tarun Bajaj said: "We don't expect the rates to drop at the moment, but we're interested in exploring what we can do to encourage certain market segments"
He requested data from stakeholders on recent increases in car pricing and the industry's growth rate to evaluate the overall demand situation. Bajaj claims that the two-wheeler sector is price sensitive and consistently underperforms.
Additionally, the Revenue Secretary asked that the industry should analyze why car sales have not risen. He observed that SUV sales have increased faster than small car sales, even though the GST on small cars is 18 per cent, while the GST on SUVs is "extremely high" due to the inclusion of the cess.
Insiders in the automotive industry have indicated that they would shortly provide the inputs sought by the government in support of the initiative.
Vikram Gulati, Country Head and Senior Vice President of Toyota Kirloskar Motor, Said that although the car sector praises the move, it recognizes the impediments that remain and wants to overcome them. Even though the country has recovered from two waves of the pandemic, overall car sales have dropped by "several years."
