Budget 2020: SIAM Demands GST Reduction On BS6 Vehicles; Incentive Based Scrappage Policy

It's not the first time SIAM has raised these demands, in fact it's been over a year the body has been asking to reduce GST rates in order to push sales during the prolonged slowdown.

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Highlights

  • SIAM has demanded reduction is GST rates on BS6 vehicles.
  • It will help to keep the price increase in check and push sales.
  • It has also asked for a incentive based scrappage policy.

Ahead of the upcoming budget session, Society Of Indian Automobile Manufacturers (SIAM) has requested the budget council to consider some of its demands. To begin with, the body has requested government to cap all BS6 vehicles at 18 per cent from the current rate of 28 per cent in a bid to neutralise the price increase on BS6 vehicles. In-turn, it will help to keep up the demand, allowing industry to recover the humongous investment that went into technology upgradation to meet the emission norms. SIAM has also asked the government to come up with an incentive based scrappage policy along with allocating more funds for internal combustion engine (ICE) powered bus procurement by state transport undertaking.

Rajan Wadhera, President- SIAM said, "As SIAM we have urged the Finance Ministry to consider announcing an incentive based scrappage policy and also increase budget allocation for ICE bus procurement by state transport undertakings. Increased cost of BS6 may effect demand, hence we have also requested Government to reduce GST rates for BS6 vehicles effective 1st April from 28 per cent to 18 per cent."

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It's not the first time SIAM has raised these demands, in fact it's been over a year the body has been asking reduction on GST rates in order to push sales during the prolonged slowdown. And the body has been asking for a proper scrappage policy for almost three years now as it will ensure withdrawal of old and polluting vehicles from the road along with giving a fillip to the sales of new vehicles which are comparatively eco-friendly, safer and are equipped with better technology.

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