Government may reduce GST on luxury cars in the budget, know what is the plan

Santosh Iyer, MD and CEO of Mercedes-Benz India, said that the luxury car industry contributes significantly to the country's GDP. In such a situation, this sector wants that the duty structure and GST should be improved on priority basis.

Some major companies in the auto sector believe that the government needs to continue the policy of promoting green mobility in the interim budget. He says that apart from this, there is also a need to maintain the pace of development of the infrastructure sector. Finance Minister Nirmala Sitharaman will present the interim budget on February 1.

Focus should be on reducing GST

Santosh Iyer, MD and CEO of Mercedes-Benz India, said that we estimate that capital expenditure on infrastructure sector projects will continue. The government should continue to focus on policy incentives for green mobility. This will help in rapidly increasing the acceptance of electric vehicles in the country. Iyer said that the luxury car industry contributes significantly to the country's GDP.

In such a situation, this sector wants that the duty structure and GST should be improved on priority basis. He said that overall we do not expect any surprises in the upcoming budget. At present 28 percent GST is levied on luxury cars. Additionally, an additional cess of 20 percent is levied on sedans and 22 percent on SUVs. In such a situation, the total tax on these vehicles is about 50 percent.

Economy and transport sector

Swapnesh R Maru, deputy MD (corporate planning, finance, admin and manufacturing), Toyota Kirloskar Motor, said vehicle makers are confident that the government will continue its efforts towards transitioning the economy and transport sector to a green future that will transition away from fossil fuels. Be less dependent on fuel. JK Tire and Industries Chairman and MD Raghupati Singhania said that sustainable policies for the auto sector will lead to the expansion of this sector.

Commercial vehicles should be electric

Suman Mishra, MD and CEO, Mahindra Last Mile Mobility, said that people are becoming financially empowered through inclusive income generation, electric three-wheelers and commercial vehicles. We hope to give priority to this sector in the Budget through the Electric Vehicle Adoption and Manufacturing in India (FAME) scheme.

Subsidy on ELCV

Shalya Gupta, CEO of PHF Leasing Limited, said that the government is committed to the target of net zero emissions by 2070. In such a situation, light commercial electric vehicles (ELCV) are not only providing employment but are also playing the role of solution to low emissions. He expressed hope that the government will not only continue the subsidy support on ELCVs but will also simplify the process of their registration. Kinetic Green Founder and CEO Sulajja Firodia Motwani expressed hope that the government will continue to support electric vehicles by announcing the FAME-III scheme.