The majority body Federation of Automobile Dealers Association (FADA) showing the automobile dealers and retailers towards the country provided its suggestions to assist the automotive industry in the coming Union budget.
“We urge the government if the concerns are accommodated in the upcoming budget this could reenergize the auto retail trade, which in turn will bring back the sector and the entire automobile industry back on track and the overall economic growth too, the association mentioned.”
The association suggested that one set of suggestions is to surge the demand for the vehicles and the other is to assist the dealers. Among its suggestions, the FADA mentioned that the GST rate upon 2 wheelers in India would control and diminished to 18% as they do not undergo luxury items.
Moreover, the group recommended that a single assessor enabled the depreciation of the vehicle which is an advantage that the organisation would enjoy. The action to permit the depreciation would permit for the effective tax savings for the people hence this surge the demand. The group indeed suggests the reintroduction of the depreciation scheme during FY 2022-23.
GST rate upon the used cars is asked to reduce from 12 and 18 per cent to 5 per cent relied on the size of the car. It seems that the used car market takes on the bigger space with respect to the primary sale of the vehicles in the country it is essential for the sector to get regularised that a GST rate reduction would assist to attain.
The group indeed asked the government to diminish the corporate tax to LLP, proprietary, and partnership firms coming via reduction provided to the private limited firms whose turnover is up to Rs 400 cr.
“FADA mentioned that This will help boost morale and sentiment of the traders which employ five million people, out of which 2.5 million employees are on direct employment,”.
While India is urged to become the 3rd largest automobile market by the year 2026 various big manufacturing giants are getting affected by the poor demand ad various Indians late buyings of the vehicles because of the covid-19.
