FADA Seeks GST Reduction on Entry-Level Two-Wheelers to Boost Demand
A delegation of the Federation of Automobile Dealers Associations (FADA) met Union Minister for Road Transport and Highways Nitin Gadkari on Wednesday to seek a reduction in the Goods and Services Tax (GST) on entry-level two-wheelers from 28% to 18%.
FADA President Manish Raj Singhania said that the current GST rate on entry-level two-wheelers is a major deterrent to demand in the segment. He noted that the segment accounts for over 75% of the total two-wheeler sales in India, but it has seen a decline of over 20% in the past few years.
Singhania argued that a reduction in the GST rate would make entry-level two-wheelers more affordable and boost demand in the segment. He also said that it would help to promote rural mobility and create jobs in the automobile sector.
Gadkari assured the FADA delegation that he would take their request into consideration. He said that the government is committed to promoting the automobile sector and that he would work with the finance ministry to see if a reduction in the GST rate on entry-level two-wheelers is possible.
The FADA delegation’s request is a welcome move. The high GST rate on entry-level two-wheelers is a major burden on consumers and it is one of the reasons why the segment has seen a decline in demand in recent years. A reduction in the GST rate would make these vehicles more affordable and would help to boost demand. It would also help to promote rural mobility and create jobs in the automobile sector.
Here are some of the benefits of reducing the GST rate on entry-level two-wheelers:
- It would make these vehicles more affordable for consumers, especially those in rural areas.
- It would boost demand for entry-level two-wheelers, which would help to create jobs in the automobile sector.
- It would promote rural mobility, as more people would be able to afford to buy and operate two-wheelers.
- It would reduce pollution, as more people would switch from cars and buses to two-wheelers.
The government should seriously consider FADA’s request and reduce the GST rate on entry-level two-wheelers. It would be a win-win for consumers, the automobile industry, and the environment.
In addition to the benefits mentioned above, reducing the GST rate on entry-level two-wheelers would also help to:
- Reduce the cost of transportation for businesses and individuals.
- Make it easier for people to get to work and school.
- Improve access to healthcare and other essential services.
- Boost economic growth in rural areas.
Overall, reducing the GST rate on entry-level two-wheelers would be a positive step for the Indian economy. It would make these vehicles more affordable, boost demand, create jobs, and promote rural mobility. The government should take FADA’s request seriously and act on it soon.
