Reducing taxes on automobiles can boost sector, benefit economy: Vikram Kirloskar

A road map to halve taxes on cars over a period of 10 years to make the Indian auto industry globally competitive and provide employment opportunities to benefit the economy needs to be considered, according to Toyota Kirloskar Vice Chairman of Motors Vikram Kirloskar. Although currently India cannot reduce the tax rate on cars significantly, he said the plan to reduce the cess in the industry can be considered considering the contribution of the sector to the overall GDP of the country. ”The car industry is heavily taxed. If we look at the car at the time it is manufactured and at the time it is sold, in most cases it is 30 to 50 percent more than the ex-factory prices (after adding) GST and all other taxes, including road taxes,” he told PTI in the interview. He continued, ”We as a business are very competitive. I think that in the world, price wise, quality wise, we have been competitive. So I think a plan to reduce the tax over a period of time will really benefit the business.” Over a period of 10 years, he continued, ‘Can you cut it in half?…is it possible to make a long-term plan on how to reduce the tax in the car industry so that it can grow? become bigger, which will make it more competitive at home and export and provide greater jobs and benefit the economy?” percentages depending on the type of vehicle. Cars that are exported as completely built units (CBU) attract a duty of between 60 percent and 100 percent depending on the size of the engine and the cost, insurance value and freight (CIF) is below or above USD 40,000. Kirloskar emphasized that such a step to gradually reduce taxes will help the country in terms of employment and boost economic growth. The car industry is a major source of employment – all the way from steel making to metal fabrication, raw materials and sales, he said, adding, ”It’s a big part of the economy, 7-8 percent of GDP. .”However, he admitted that a major tax cut on cars is not currently a feasible idea. ”We cannot do as a country … I have not asked for a reduction in GST. I’m just talking because it’s possible to plan a long-term plan and a way to reduce taxes on the car industry so that it can grow bigger, which will make it more competitive at home and export and provide more jobs. and benefit the economy?” Kirloskar added. Regarding the demands of the auto industry sector to reduce tariffs on imported electric vehicles to encourage electrification of cars in India, he said, ”Why can’t you come here?” Kirloskar said companies should develop a supply chain here. in India to improve domestic production.

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(This story is not edited by Devdiscourse staff and is automatically generated from the aggregated feed.)


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