Automobile industry expects rationalisation of tax, scrappage policy from Budget 2021
With budget around the corner, automobile industry is hopeful that in the mid to long term government is okay at rationalising the tax structure. Currently, most cars, commercial vehicles and two-wheelers fall in the bracket of 28 per cent. The tax needs to be brought down as it is very high in the automobile sector. In addition, the need of the hour is scrappage policy. With these announcements, demand is going to increase tremendously.
In addition, the budget opens the doors to measures that can help to boost sustainable growth for the industry. Implementation of the scrappage policy will also improve sales that will benefit the industry and environment.
When it comes to manufacturing sector, stabilisation of raw material prices is of importance to the industry, promoting finished good exports will, in turn, increase foreign exchange market reserve and be a positive step. The industry is also in need of relief in custom duties especially for raw materials and other manufacturing elements.