SIAM seeks to have the two tax rate format in the forthcoming Union Budget 2018-19 instead of multiple rates being levied under GST
SIAM (Society of Indian Automobile Manufacturers) is attempting to have a system of two tax rates under the GST regulation as opposed to the rather confusing system existing currently. It seeks to have the new format in the forthcoming Union Budget 2018-19 instead of multiple rates being levied. The organisation will also seem to be looking to bringing down the tax rate for electric and hydrogen fuel cell vehicles.
It is expecting to reassess the strategy with 12 percent tax by requesting the Indian government and ask them to exempt duty on 10-13 seater ambulances. At present, the GST (Goods and Services Tax) regime allows for the small petrol cars with less than 1,200 cc engine capacity attract 1 percent cess and the diesel-powered cars having engine capacity of less than 1,500 cc receive a cess of 3 percent – in addition to the 28 percent tax.
For the vehicles used for transportation of as much as 13 passengers along with hybrid cars, mid-, large-sized and SUVs of different categories have the cess at 15 percent. SIAM has also proposed a fixed tax system for the used cars and wants it to remain at 5 percent on the differential value between purchase and selling price.
The auto industry will slowly be on a transition phase to electric vehicles and many leading automakers are either investing in startups or joining hands with fellow brands for a major push. With Tata Motors delivering first batch of EVs to state-run EESL and Mahindra making moves to commercialize new zero-emission cars, the battle for supremacy is already well and truly on.
SIAM is trying its ease things off and is seeking extension of concessions in custom duty for important components as far as EV production is concerned. In a bit to support Make-In-India initiative, it is expecting stricter customs for CBU imports of electric vehicles and also wants definitive norms over CKD units.