2019 Budget: Reduce the GST rate and cess applied on luxury vehicles, Volkswagen India
Finance Minister Arun Jaitley will be announcing the 2019 Union Budget on February 1, 2019. This will be the first session where the budget will be proposed. However, it is at the second session that approvals will be given to the proposed budget, which then becomes official. While every sector in India is eyeing the Union Budget 2018-19 to know about the new developments that will be brought into effect, here is Volkswagen India's expectation from Union Budget 2019.
"This year, the automotive industry is undergoing a major technological transformation as we shift from BS IV to BS VI norms, enhance our safety standards and increasingly prepare towards developing the e-mobility landscape. With increased investments, we urge the government to support and uplift the declining market sentiment by reducing the GST rate and cess applied on luxury vehicles," commented the spokesperson of Volkswagen Passenger Cars.
It was further added, "Before we think of subsidies on hybrid and electric vehicles, it is necessary for the government to outlay a stable regulatory and taxation framework that supports and incentivises the manufacturing of electric vehicles in India. As an industry, we must realistically understand the willingness of a customer and the value proposition that electric vehicles will offer. We sincerely urge the government to prepare a conducive business case for auto manufacturers. For the success of electric vehicles in India, we must ensure that all regions (not limited to metro cities only) receives 24-hour electric supply. Also, a fast DC charger system as most people do not have a dedicated parking space (a common phenomenon in metro cities). Additionally, adequate charging stations, one in a range of every 3-5kms across cities and highways along with residential and commercial buildings."