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Vehicles will become cheaper and employment will also increase if the government accepts this point of the auto industry

highlights

Indian automobile industry will be able to become more competitive globally.
Employment will be generated on a large scale, which will benefit the economy.
At present, India cannot drastically reduce the tax rate on vehicles.

New Delhi. Vikram Kirloskar, vice-chairman of Toyota Kirloskar Motor, has recently said that there is a need to create a roadmap to reduce the tax on vehicles to half over a period of 10 years. He said that if this is done, the Indian automobile industry will become more competitive globally and this will create large scale employment opportunities, which will benefit the economy.

Kirloskar said in an interview that at present India cannot drastically reduce the tax rate on vehicles. Along with this, he added that considering the contribution of this sector in the country’s total gross domestic product (GDP), a plan to reduce the cess on the industry can be considered. Now it remains to be seen whether the government will take any decision keeping this demand of the auto industry in mind in the upcoming budget?

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Car price increases by 30 to 50 percent

Kirloskar said that the automobile industry is heavily taxed. If we look at the price of a car at the time of its production and its sale, in most cases it is 30 to 50 per cent higher after adding the Goods and Services Tax (GST) and all other taxes as compared to the prices at the factory gate. sits more.

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Will get employment and the economy will benefit

Kirloskar further said, “We are very competitive as an industry. I think cost-wise, quality-wise, we’ve become very competitive in the world. So I think the plan to reduce taxes over time will actually benefit the industry.” He said that over a period of 10 years, can you halve it… Is there any way to reduce taxation in the auto industry. It is possible to make long term plans for it, so that it can be made big enough. He said, “This will make it more competitive in terms of domestic market and exports. This will provide employment on a large scale and will benefit the economy.

Highest tax on imported cars

At present, 28 percent GST is levied on vehicles. Apart from this, depending on the type of vehicle, a cess of one to 22 percent is levied on it. Cars imported as a completely built unit (CBU) attract customs duty of 60 to 100 per cent. Kirloskar said that gradually reducing taxes will boost employment and economic growth.

Tags: auto news, automotive, Bike News, Toyota

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