Govt. Open to Tax Cut for Boosting Auto Recovery

The government is open to the idea of tweaking tax rates on automobile to increase their affordability, a top official said on Wednesday. The stance comes amid a prolonged slowdown that has dragged volumes lower across segment.

“We do not anticipate rates to go down at this stage, but we are very happy to see what we can tinker with so certain segments get encouraged,” said revenue secretary Tarun Bajaj. He requested stakeholders to submit data correlating vehicle price hikes with industry growth rates in the last few years, to evaluate the demand environment.

The two-wheeler segment is price-sensitive and has not been “doing well,” Bajaj said, at the 61st annual convention of the Society of Indian Automobile Manufacturers (SIAM). S-ET

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