Skip to main content

Siam seeks same GST rate for small cars,MUVs

By
The automobile industry’s apex body,Society of Indian Automobile Manufacturers (Siam), has sought a standard tax rate for small car sand multiutility vehicles(MUVs)incoming national goods and services tax(GST),while pressing for an additional eight percent tax on other cars.
It has also suggested a minimumre laxation of eight per cent in taxes on electric/hybridoral ternatefuel cars.And,a standard rate on two-wheelers,three-wheelers and commercial vehicles.“For along time,there were only two rates of excise duties on passenger cars.
In recent years,the bigger car rates have got fragmented and, today, we have four rates for passenger cars, excluding electric vehicles and hybrid electrics,for which lower rates are applicable. There is a need to look at the GST rate for automobiles sensitively,”Siamsaid.
Currently, a small car attracts 12.5 percent excise duty. This should have a length of less than four metres and an engine capacity of less than 1,200cc for petrolorless than1,500ccforadieselcar. Maruti’sAltoandWagonR, and Hyundai’si10,aresmall cars.Interestingly,two-wheelers, three-wheelers, trucks andbusesenjoythesame exciseduty.
At the next segment of vehicles, the excise rate almost doubles to 24percent. This is defined by a length of over four metres but an engine capacity similar to a small car.Toyota’s Etios and the Honda City are in this segment.The nexts lab of 27percent excise duty is imposed on vehicles over four metres and with a petroleng ineof over1,200 cc ordieselengine ofover1,500cc.TheHonda Accord and Maruti Ciaz (petrol)areinthissegment.
The highest excise of 30 percent is imposed on MUVs and sports utility vehicles.These must have a length of over four metres,engine of over 1,200cc for petrol or over 1,500 cc for diesel,and a ground clearance over170mm.
The GST regime is expected to subsume all taxes that are now levied at the Centre (excise duty) and state levels(sales,roadand registration tax).
Business Standard New Delhi,07th September 2016

Comments

Post a Comment

Popular posts from this blog

GST collection for November rises by 8.5% to Rs.1.82 trillion

By
  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...
Post a Comment
Read more

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

RBI to weigh growth slowdown, inflation at its MPC meeting this December

By
  Despite GDP growth declining to 5.4 per cent in the July–September quarter, the Reserve Bank of India’s (RBI) six-member monetary policy committee (MPC) is expected to maintain the current repo rate during its review meeting this week, according to a Business Standard survey of 10 respondents. Among the respondents, only IDFC First Bank forecast a 25-basis-point (bps) reduction in the repo rate. Since May 2022, the RBI has raised the repo rate by 250 bps to 6.5 per cent as of February 2023 and has held it steady across the last 10 policy reviews. The latest GDP figures, published on Friday (November 29), showed that growth for Q2 FY25 slowed to 5.4 per cent year-on-year, down from 6.7 per cent in Q1. Most survey participants suggested that the RBI might revise its growth and inflation projections for the financial year. The poll indicated that the central bank could lower its growth estimate from the current 7.2 per cent and increase its inflation forecast, currently at 4.5 per c...
1 comment
Read more