New Delhi: Tax slabs on vehicles in India are much higher than many countries. There is a need to bring down it to generate demand and industry development. Maruti Suzuki India Managing Director and Chief Executive Officer Kenichi Ayukawa said this on Wednesday. At present, there is the highest merchandise and service tax (GST) of 28 percent on vehicles. Apart from this, there is also a one to 15 percent cess of length, size of engine and type.
Demanded tax reduction from government
Ayakawa said that the rate of tax is higher than in other countries. For the development of the industry, we have asked the government to reduce the tax. However, we understand that this is not easy. He said, "We have to try to find some solution in cooperation with the government." The best way to encourage demand is to subtract. Asked about the expectations from the budget, Ayakawa said that the upcoming interim budget would be a bit 'uncertain'.
Reducing tax will not be easy
He said that the budget coming after the general elections will be important. However, we are constantly in touch with the government to cut the tax rates for the industry. We know that this will not be easy to do. Demand for tax reduction on vehicles is taking place at a time when domestic passenger vehicle sales have declined. Vehicle sales have declined in December, 2018 too. In this way, out of the last six months, the sales of vehicles have declined in five.
According to SIAM data, sales of passenger vehicles in the country during the April-December period of the current fiscal increased by 4.37 percent to 25,33,221 units from 24,27,046 units in the same period last fiscal.
Demanded tax reduction from government
Ayakawa said that the rate of tax is higher than in other countries. For the development of the industry, we have asked the government to reduce the tax. However, we understand that this is not easy. He said, "We have to try to find some solution in cooperation with the government." The best way to encourage demand is to subtract. Asked about the expectations from the budget, Ayakawa said that the upcoming interim budget would be a bit 'uncertain'.
Reducing tax will not be easy
He said that the budget coming after the general elections will be important. However, we are constantly in touch with the government to cut the tax rates for the industry. We know that this will not be easy to do. Demand for tax reduction on vehicles is taking place at a time when domestic passenger vehicle sales have declined. Vehicle sales have declined in December, 2018 too. In this way, out of the last six months, the sales of vehicles have declined in five.
According to SIAM data, sales of passenger vehicles in the country during the April-December period of the current fiscal increased by 4.37 percent to 25,33,221 units from 24,27,046 units in the same period last fiscal.
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