Coronavirus Outbreak: SIAM seeks GST rate cut, incentive-based scrappage policy to revive auto sector

SIAM has also asked for fund allocation for diesel/CNG bus procurement by state transport undertakings, over and above the allocation for electric buses under FAME 2 scheme.

Press Trust of India April 17, 2020 19:31:48 IST
Coronavirus Outbreak: SIAM seeks GST rate cut, incentive-based scrappage policy to revive auto sector

New Delhi: Auto industry body SIAM on Friday said it has sought temporary GST rate cut on vehicles and introduction of incentive based scrappage policy from the government at the earliest in order to revive the sector amid the coronavirus pandemic.

While appreciating RBI's announcement to support NBFCs and MSME sector by infusing liquidity in the system, the Society of Indian Automobile Manufacturers (SIAM) sought several 'key interventions' for the the auto sector.

" COVID-19 has left the Indian economy and automobile industry in deep distress and financial support and demand revival is a necessity," SIAM president Rajan Wadhera told PTI.

 <span class=Coronavirus Outbreak SIAM seeks GST rate cut incentivebased scrappage policy to revive auto sector" width="380" height="285" />

Representational image. Reuters

COVID-19 is an unprecedented situation and hence requires unique measures, he added.

"SIAM is hopeful that the lending rates would be slashed substantially for consumers to benefit in these challenging times," he added.

In order to revive the auto industry, SIAM has sought temporary reduction in standard Goods and Services Tax (GST) rate by 10 percent across all vehicle categories, auto components while maintaining the current product segment GST rate differential, Wadhera said.

The auto industry body has also sought introduction of incentive based vehicle scrappage scheme to generate demand.

"The incentives can be in the form of 50 percent rebate in GST, road tax and registration charges," he added.

SIAM has also asked for fund allocation for diesel/CNG bus procurement by state transport undertakings, over and above the allocation for electric buses under FAME 2 scheme, Wadhera noted.

Besides, it has also asked to expedite release of all pending payments to vehicle manufacturers and contractors of highway and infrastructure projects against past procurement by central government and other agencies to increase liquidity in the system, he added.

Wadhera said SIAM has also asked for fast track disbursement of all government incentives and benefits to all industries.

"The automotive industry is the backbone of manufacturing sector in India in terms of employment and contribution to GDP, and its revival will be critical for the manufacturing sector and economy of India," he added.

Updated Date:

also read

Uddhav Thackeray meets Narendra Modi, discusses Maratha quota issue, GST compensation
India

Uddhav Thackeray meets Narendra Modi, discusses Maratha quota issue, GST compensation

Maharashtra deputy chief minister and senior NCP leader Ajit Pawar and senior Congress leader Ashok Chavan also accompanied Thackeray during the meeting with the prime minister

Supreme Court stays Delhi HC's order holding IGST on imported oxygen concentrators as 'unconstitutional'
India

Supreme Court stays Delhi HC's order holding IGST on imported oxygen concentrators as 'unconstitutional'

AG KK Venugopal said the GST Council will meet on 8 June and deliberate on granting exemption to essential items related to COVID-19, including oxygen concentrators

West Bengal finance minister Amit Mitra claims his voice was 'muzzled' during virtual GST Council meeting
India

West Bengal finance minister Amit Mitra claims his voice was 'muzzled' during virtual GST Council meeting

Union Minister of State for Finance Anurag Singh Thakur, however, countered Mitra's charges and said that technical glitches had marred the latter's speech