The Union Budget 2013 is here and it is all set to get the automobile sector a new segment. The Government will from this year onwards provide subsidies and funds for the development of Hybrid-Electric Vehicles and Electric Vehicles. The Society of Indian Automobile Manufacturers (SIAM) has stated in its pre-Budget memorandum that the Budget 2013 will make the funds available for the electric vehicles till the time the recommendations of the Ministry of Heavy Industries & Public Enterprises are implemented.
SIAM has also asked Mr.P.Chidambram to retail the custom duties on CBUs in the car, 3-wheelers and MUVs under the tariff heading – 87.03 and on the two-wheelers/ goods three wheelers under tariff heading – 87.11. SIAM has also asked the finance minister to increase the customs on commercial vehicles falling under tariff heading – 87.02 & 87.04 to 40%. “Excise duty on all vehicles falling under HS 8702 with seating capacity of 10 – 13 persons should attract the same rate as buses,” SIAM stated in the pre-budget memorandum.
SIAM has also asked for the introduction of GST across all the states in the country.”Subsume all indirect taxes, including Road Tax, R&D Cess and Octroi, in the proposed GST to prevent cascading effect. Taxation of Used vehicles should be covered as well as taxes like road tax should be subsumed in GST,” is what the official statement read. The automobile industry in the country has been in a bit of a turmoil off late and SIAM is looking to Budget 2013 to help the industry ride over the tide.
SIAM is looking for an excise duty structure which was stated in the Auto Policy and the 10-year Auto Mission Plan. It is also seeking for a concessional excise duty structure which is pretty much an equivalent GST which will be levied at a rate of flat 10 percent across all the automobile segments. SIAM is doing what it can to help the industry. Stay tuned to Carblogindia.com for further updates from the Budget 2013 and their effect on the Automobile industry.