Union Budget 2012: 9 things auto sector wants from Pranab Mukherjee

By Dinesh Supekar, Partner and  Navneet Kothari, Senior Manager, Price Waterhouse & Co

The auto industry has witnessed huge downturn over the last few years. While the industry somewhat recovered in 2010, it again went into a downslide after that. The industry, thus, witnessed some kind of a roller-coaster ride. Though the future looks optimistic, on an immediate basis, there are some concerns which the Industry is hoping to get addressed in the coming Budget.

At the same time, the Finance Minister (FM) is faced with a growing fiscal deficit and needs to garner revenues. Moreover, steps towards reducing the fiscal deficit could lead the FM to take revenue-generating measures. The industry hopes that that there are no kneejerk reactions and the Budget contains measures to promote long-term growth.

Given this backdrop, the industry expects some sops in this budget to overcome few of these economic challenges. 

A clear roadmap for GST implementation: The industry players are subject to multiple taxes that is customs, excise, service tax, etc. A simplified tax structure as envisaged under the GST regime will be more effective. While the implementation of the GST regime has been deferred often in the past, the industry expects a clear roadmap in the forthcoming Budget.

Certainty in this uncertain environment