Qrius
  • Business
    • Banking
    • Finance
    • Investment Guide
    • Policy
    • SMEs
    • Net Worth
    • Startup
    • Pros and Cons
  • World
    • Entertainment
    • Climate
    • Culture
    • Economy
    • History
    • Politics
    • Elections
    • Sports
      • Scrabble
    • Health
    • Lifestyle
  • Science & Technology
    • Archaeology
    • Nature
    • Space
    • Tech
    • AI
    • Fintech
    • Futuristic Technologies
    • IOT
  • India
    • Culture
    • Economy
    • History
    • Politics
    • Sports
    • Entertainment
    • Climate
    • Health
    • Lifestyle
  • Contributors
    • Digital Marketing Guest Post
    • Education Guest Post
    • Travel Guest Post
    • Fashion Guest Post
    • Fintech Guest Post
    • Health Guest Post
    • IOT Guest Post
    • Politics Guest Post
    • Sports Guest Post
    • AI Guest Post
    • Technology Guest Post
    • Literature Guest Post
  • Content Services
  • Business
    • Banking
    • Finance
    • Investment Guide
    • Policy
    • SMEs
    • Net Worth
    • Startup
    • Pros and Cons
  • World
    • Entertainment
    • Climate
    • Culture
    • Economy
    • History
    • Politics
    • Elections
    • Sports
      • Scrabble
    • Health
    • Lifestyle
  • Science & Technology
    • Archaeology
    • Nature
    • Space
    • Tech
    • AI
    • Fintech
    • Futuristic Technologies
    • IOT
  • India
    • Culture
    • Economy
    • History
    • Politics
    • Sports
    • Entertainment
    • Climate
    • Health
    • Lifestyle
  • Contributors
    • Digital Marketing Guest Post
    • Education Guest Post
    • Travel Guest Post
    • Fashion Guest Post
    • Fintech Guest Post
    • Health Guest Post
    • IOT Guest Post
    • Politics Guest Post
    • Sports Guest Post
    • AI Guest Post
    • Technology Guest Post
    • Literature Guest Post
  • Content Services
15 Feb, 18
15 Feb, 18

Explained: Potential changes in India’s automobile policy announced at 14th Auto Expo

Anant Geete, Minister of Heavy Industries and Public Enterprises unveils the drafting of a new Automobile policy for India at the Auto Expo.

By Qrius

By Arsh Rampal

The Central Government is working on a new fool-proof and consumer-friendly policy for the automobile sector. The new policy is aimed at addressing issues raised by the industry, particularly tax issues. The draft of the new policy is likely to be released in the next two months.

Drafting a new Automobile policy, with changes in tax structures

The news of the drafting of a new policy was delivered by Anant Geete, Minister of Heavy Industries and Public Enterprises at the inauguration of the 14th Auto Expo. The minister stated that the inputs of stakeholders and industry bodies such as the Society of Indian Automobile Manufacturers (SIAM) and ACMA Automotive Component Manufacturers Association of India (ACMA) will be taken while drafting the new policy.

The industry had been demanding changes in the tax structure before the annual budget was delivered. The industry feels that the current policy will be a financial burden upon them. The policy will also tackle issues raised by the electric vehicles industry. The fate of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) policy and the adoption of BS-VI emission norms are likely to be discussed in the policy as well.

What are the tax problems in the automobile sector?

The automobile industry has said that the current tax regime under the Goods and Services Tax (GST) is not suitable for business. The industry has demanded a stabilisation of the tax rates in the country. There have been regular fluctuations under the GST in tax rates. The tax rates are not uniform as local taxes are levied at State level. There also exist several tax slabs in the automobile sector. The industry has demanded only two tax slabs for passenger vehicles. There is also a demand to reduce the tax on electric vehicles from 12% to 5%.

Pressing concerns expressed by the sector

Abhay Firodia, the President of SIAM has also raised issues regarding the shift to BS-VI emission norms. He has criticised the government’s move to shift to BS-VI efficiency norms in the next four years. The move has been called “premature, immature” as it could significantly add to costs. There are currently no BS-VI engines in India and they need to be developed. This development needs to be done in a mature, patient, calculated and sober manner and not in a hurry. Countries are usually given ten years or more to move from one standard to another and a time period of four years is too less.

Other demands of the industry include extending custom duty concession to critical components of Electric Vehicles (EV). Exemption of six percent excise duty for EVs has also been suggested. The Research and Development benefit should also not be reduced for the industry which has been gradually decreasing. A suggestion to reduce personal income tax has also been given as it will boost revenue for the government.

Future outlook for Indian automobiles

The Government’s new policy is aimed at boosting eco-friendly vehicles. The Minister acknowledged the hastiness of the move to move to BS-VI norms. The move, however, is to ensure that the country adopts more eco-friendly norms. The government thus is also aiming to extend the FAME initiative, the first phase of which is coming to an end in March.


Featured Image Credits:  vm2827 on Visualhunt.com / CC BY-NC-SA


Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius

About Author

Qrius

what is qrius

Qrius reduces complexity. We explain the most important issues of our time, answering the question: "What does this mean for me?"


Featured articles

1

Before Christ

What Does BCE Mean? Difference between BCE, CE, BC and AD
2

GDP

Revealing the Top 10 GDP Countries of 2024: A Deep Dive into Global Economic Powerhouses
3

Android

The Ultimate Guide to the Best Car Racing Games for Android in 2024
4

cars

Best Family Car in India in 2024: Experience Memorable Journeys with Loved Ones
5

Extreme sports

Hidden Chess Rules: Elevate Your Game with Secret Strategies
6

adventure sports

Cristiano Ronaldo vs Lionel Messi: Why Cristiano Ronaldo Is Better
7

40 Top GK Questions: Boost Your Knowledge Quotient!
8

Why has increased productivity not led to more free time?
9

gita

Gita quotes on karma: Want to live your best life? Laws to live by…
10

Facebook

Facebook and Instagram down: What reason did Meta give?

About Qrius

  • About Us
  • Content Services
  • Contributors
  • Become a Contributor
  • Contact

Contribute

  • Digital Marketing Guest Post
  • Education Guest Post
  • Travel Guest Post
  • Fashion Guest Post
  • Fintech Guest Post
  • Health Guest Post
  • IOT Guest Post
  • Literature Guest Post
  • Politics Guest Post
  • Sports Guest Post
  • Technology Guest Post
  • AI Guest Post

Quick Links

  • World
  • Entertainment
  • Climate
  • Culture
  • Economy
  • History
  • Politics
  • Elections
  • Sports
  • Health
  • Lifestyle
  • Science & Tech
  • Archaeology
  • Nature
  • Space
  • Tech
  • AI
  • Fintech
  • Futuristic Technologies
  • IoT
  • India
  • Culture
  • Economy
  • History
  • Politics
  • Sports
  • Entertainment
  • Climate
  • Health
  • Lifestyle
2018 QRIUS. All Rights Reserved