Moneycontrol
Get App
Last Updated : Jun 12, 2019 12:37 PM IST | Source: Moneycontrol.com

Budget Snapshots | Auto industry pitches for a more moderate tax regime

Moneycontrol Research @moneycontrolcom
Representative Image
Representative Image

The Indian automobile sector has been hit hard by a slowdown stemming from multiple challenges such as an increase in total cost of ownership because of mandatory long-term insurance and implementation of safety regulations, tight liquidity conditions affecting retail loans and a moderation in economic activity before the just-concluded general elections.

Measures in the Budget to boost economic activity, improve rural sentiment and add to disposable income (direct tax cuts) could go a long way in reviving consumer sentiment, as would other measures to ensure financing becomes easier.

While GST rates are now no longer part of the Budget process, the GST Council could consider changes to rates during this period. For long, the auto industry has been pressing for a cut in GST to 18 percent from 28 percent. If that materialises, it could boost auto demand by lowering prices.

Close
Capture

Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on Jun 12, 2019 10:15 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant