TVS Motor calls for GST rate cut on two wheelers1 min read . Updated: 08 Jan 2019, 06:09 PM IST
TVS Motor's comment comes a week after Hero MotoCorp chairman Pawan Munjal batted for a reduction in GST rate for two-wheelers to 18% from 28%
New Delhi: TVS Motor Co. Ltd chairman Venu Srinivasan on Tuesday joined the chorus for a GST rate cut on two-wheelers, saying that the mass mobility item should not be benchmarked against luxury goods. His comment comes a week after Hero MotoCorp chairman Pawan Munjal batted for a reduction in GST rate for two-wheelers to 18% from 28%.
“Given the importance of the two-wheeler segment as an item for mass mobility, GST rates for two-wheelers undoubtedly needs to be reconsidered," Srinivasan said in a statement.
Rising urbanisation, increasing purchasing power and the enhanced need for connectivity—particularly in smaller cities across India—has fuelled the two-wheeler revolution for personal mobility.
“It (two-wheeler) certainly cannot be benchmarked against the prevalent GST rates for luxury goods at 28%, especially given the current state of inconsistencies with the integrated multimodal public transport systems across India," he added.
According to Srinivasan, since mandatory implementation of new safety norms and Bharat Stage VI emission norms in the near future will increase two-wheeler prices, “it has become even more imperative to re-look at GST rates for two-wheelers to ensure social inclusion that is sustainable in the longer run".
Hero’s Munjal had last week said that a GST rate cut on two-wheelers will not only help millions of two-wheeler customers but also the entire value chain dependent on the sector. Such a step was absolutely imperative to ensure growth in the auto sector to create and sustain inclusive economic growth, he had said.
Bajaj Auto Ltd’s managing director Rajiv Bajaj also reportedly supported the GST rate cut demand, stating that such a step would help mitigate increase in costs that would come with the implementation of new safety and emission norms.