Auto industry seeks sop-based scrappage policy, GST rate cut

New Delhi, January 27

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Auto industry body SIAM today urged the government to announce an incentive-based scrappage policy ahead of the Budget, while also seeking a reduction in GST on BS-VI vehicles to 18%.

The Society of Indian Automobile Manufacturers (SIAM) also suggested Finance Minister Nirmala Sitharaman to increase Budget allocation for internal combustion engine (ICE) bus procurement by state transport undertakings.

“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,” SIAM president Rajan Wadhera said.

He further said increased cost of BS-VI vehicles may effect demand.

“Hence, we have also requested government to reduce GST rates for BS-VI vehicles effective April 1 from 28% to 18%,” Wadhera added.

From April 1, India will transition to stricter emission norm BS-VI from the current BS-IV. As per industry estimates, BS-VI vehicles are expected to be at least 10% costlier. — PTI