Union Minister of Road Transport and Highways Nitin Gadkari, on Thursday (September 5), conceded that the automobile sector is going through a slowdown and promised to give his recommendations to the Union Finance Minister Nirmala Sitharaman to rev up the industry.
Addressing a gathering at the Society of Indian Automobile Manufacturers (SIAM) conclave, in New Delhi Nitin Gadkari said, “Considering the slump in the sector and the expected increase in cost with implementation of the BS-VI emission norms, I will give my recommendations to the finance minister,” news reports quoted Gadkari as saying.
The Union Minister also assured the gathering that the Modi government doesn’t have any plan to ban petrol and diesel vehicles and replace them with electric ones. Gadkari also revealed that his ministry was in talks with the GST council to get the GST reduced for hybrid vehicles.
It is to be noted that the GST on electric vehicles has already been reduced from 12 percent to 5 percent.
Pointing to the suggestions that sought a Goods and Services Tax (GST) reduction on petrol and diesel vehicles he promised to consider it and take it up with the Union Finance Minister.
In a statement, Rajan Wadhera, SIAM President, said, “All this while, the industry has pulled out all the stops in offering attractive deals and discounts to the consumers. However, the ability of the industry to provide large discounts is limited and this highlights the need for the government to consider reducing the GST rates from 28 percent to 18 percent which would significantly reduce the cost of vehicles and, in turn, create demand.”