Budget 2015-16: Implement GST soon

Pricing a vehicle is a tedious process in India, but more than just the complexity of it, it’s the price variation that affects people who are about to invest in their new vehicle. Delhi for instance attracts lower taxes than Mumbai and Bangalore and Chennai are also costly. Union territories have a different tax slab as well. It varies not just from state to state but from City to city. 

Indirect taxes are like a plague affecting the auto industry. With implementation of the Goods and Service Tax (GST), Vehicle manufacturers can breathe easy by simplifying pricing. Sales will increase as the on-road cost of a vehicle will drop due to the elimination of unnecessary indirect taxes. Manufacturers believe that delay in implementation of GST will adversely affect the auto industry. 

Jnaneswar Sen, Sr. Vice President, Honda Cars India Ltd says, “The consumer has lot of favourable expectations from the Union Budget in terms of Direct Taxes which will give extra money in the hands of consumer and help revive the consumer sentiments.” 

Hyundai India too is of the opinion that the government needs to rationalize taxes, implement GST and bring it soon. Rakesh Srivastava, Senior Vice President, Sales and Marketing, Hyundai India says that this will benefit the economy and the auto industry as well.

Renault meanwhile is hoping for GST to simplify pricing as it will help have a uniform tax structure across all states. We are also looking forward to the implementation of the GST bill, which the Government has tabled in Lok Sabha, which will play a significant role by creating a uniform tax structure across all states, says Sumit Sawhney - Country CEO & MD, Renault India Operations.

It is a unanimous plea from the auto industry fortified by the suggestions by industry body SIAM who have sent budget recommendations to the Government. SIAM says, “ We have suggested that under GST all taxes should be subsumed, including road tax.”