Hailing the passage of GST Bill in the Rajya Sabha, automobile makers today said it offers an “excellent opportunity” for rationalising the existing differential tax structure on vehicles based on physical dimensions and simplify taxation burden.
“From the automobile industry perspective, which contributes close to 45 per cent in the manufacturing GDP, it’s an excellent opportunity for the government to rationalise the current differential tax structure based on physical dimensions,” Honda Cars India Ltd (HCIL) President and CEO Yoichiro Ueno told PTI. With India benchmarking car safety, emission and fuel efficiency standards with the developed automobile markets, the tax structure should also be aligned to meet these objectives, he added. “This would be a win-win situation for the environment, customer and the economy,” Ueno said. Expressing similar sentiments, Renault India Operations Country CEO and Managing Director Sumit Sawhney said the GST Bill will positively impact several sectors “including the automobile industry, by minimising and simplifying the taxation burden”.