Press Trust of India
New Delhi, Jan 10: Stating that the automotive industry in India is ‘highly taxed’ with levies accounting for up to 77 per cent on cost, SIAM has asked the government to merge multiple taxes into a single excise duty. The automotive industry body, in its pre-Budget presentation to the Finance Ministry, also said that road tax must be subsumed in GST in order to prevent state governments “tweaking it to raise further revenue as is being done today”.
Besides, the Society of Indian Automobile Manufacturers (SIAM) said the 1 per cent NCCD (National Calamity Contingent Duty) on vehicles should be withdrawn saying “including motor vehicles, which provide mobility, in the discouraged category with tobacco is not fair and equitable”. Stressing on the need to give the sector a relief from tax burden, SIAM said, “Automotive industry in India is a highly taxed sector, taxation accounts for up to 77 per cent on cost…(it has) one of the highest taxed manufactured products in India.”
On the issue of multiple taxation, SIAM said currently levies applicable on vehicles included basic excise duty -– 12.5 per cent, 24 per cent, 27 per cent and 30 per cent; automobile cess of 0.125 per cent and NCCD of 1 per cent. These multiple levies should be merged into a single head under excise duty, it said. The industry body is also of the view that there must only be two rates for excise duties on motor vehicles.
“Small cars/vehicles, two-wheeler, three wheeler, goods vehicle, chassis for motor vehicles, passenger vehicle designed for carrying 10 or more persons should attract lower duty (of) 12.5 per cent as is the present rate,” SIAM said, adding all other passenger vehicles be levied excise duty of 20 per cent.