SIAM seeks R&D incentive in Budget 2018, support for import of EV parts
Ahead of the Budget, automobile industry body SIAM has asked the government to restore incentives given on research and development in the form of weighted tax deduction to the previous level
New Delhi: Ahead of the Budget, automobile industry body SIAM has asked the government to restore incentives given on research and development in the form of weighted tax deduction to the previous level.
In its pre-budget wish list, the Society of Indian Automobile Manufacturers has also sought inclusion of certain imported electric vehicle parts in preferential tariff list to help promote the eco-friendly technology.
"When the government reduced the weighted tax deduction, it was stated that the corporate tax rate would be reduced from 30 percent to 25 per but that hasn't happened," SIAM Deputy Director General Sugato Sen said.
From 2017-18 the weighted tax deduction on research and development (R&D) expenses has been reduced to 150 percent from 200 percent earlier.
"What we have requested the government is that if the tax rate is not reduced then the incentive on R&D through weighted deduction should be increased," he added.
Sen said such a step is required as many automobile companies in India are spending a lot on R&D expenses.
On electric vehicles, he said the industry has said that imported systems and components that are not made in India must be put under the preferential import tariff list.
"Already there is a list and we have added more components to it," Sen said.
SIAM's demand comes in the backdrop of government promoting electric vehicles in India targeting with a vision of 100 percent electric for public transport and 40 percent electric for personal mobility by 2030.
The Budget Session in Parliament will be held in two phases — first from 31 January to 11 February and the second from 14 March to 8 April
This year budget draws bold policy interventions to strengthen digital infrastructure which would eventually help digitizing banking and thereby the overall economy.
The budget session of Parliament is set to commence on 31 January and will conclude on 8 April, the first half of the budget session will run from 31 January to 11 February