Auto industry welcomes Union Budget
All the speculations and rumours were put to an end after the Finanace minister revealed the Union Budget yesterday. The auto biggies had kept their fingers crossed and are extremely elated over the budget. Expresing his thoughts over the Union Budget announced yesterday Dr. Pawan Goenka, President of SIAM said that its a reform oriented budget since the Finance Minister spoke about various reforms like roadmap for Direct Taxes Code, Constitutional Amendment Bill for Goods and Services Tax (GST).
In the current session of Parliament, there will be discussion about these reform initiatives as well as the pilot project across 11 states for implementation of IT towards GST introduction will also be a highlight.
Vice President, SIAM, Mr S Sandilya, mentioned about the expected demand creation in the rural areas. He said that with the rise in the money pouring into the rural areas from Rs 3,75,000 crores to Rs 4,75,000 crores, it is likely to generate demand in the rural areas. On the other hand he also showed concerns about inflation.Dr Goenka also welcomed the proposal given by the Hon'ble Finance Minister regarding setting up National Mission for Hybrid and Electric Hybrid vehicles. He also acknowledged the efforts put in by the Department of Heavy Industry for bringing the matter to the attention. Not only this but he also spoke about the various measures introduced by the FM in order to promote the eco friendly cars. Including the exemption on the specific parts from Basic Customs Duty and CVD to 10% excise duty for Fuel cell and Hydrogen vehicles along with 5% excise duty, etc. This will give encouragement to the production, development and sale of such cars in India.
SIAM has been requesting to remove certain anomalies in the excise duty structure such as like Taxi Refund extended to vehicles with seating capacity up to 13 persons and exemption to factory-built ambulances from additional excise duty, which has been done.
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