Bajaj Auto at Managing Director Rajiv Bajaj told CNBC-TV18 that reducing the Goods and Services Tax rate on two-wheelers will be great for the industry and that the government needed to give incentives to consumers at a time when jobs have been cut and affordability is low.
Bajaj said two-wheelers would be cheaper by Rs 8000-10000 if the GST rate was lowered to 18 percent.
He said the reduction of export incentives has come as a shocker for the industry, with Bajaj Auto itself having lost Rs 300 crore due to the ceiling on export incentives.
He said the government should focus export incentives on companies that have the scale to become global players.
The current rate of GST on two-wheelers is 28 percent, the highest slab. Yesterday, Finance Minister Nirmala Sitharaman said that the GST Council would look into the auto industry's demand for lowering the tax rate on two-wheelers, as two-wheeler was neither a luxury nor sin product.
Bajaj said two-wheelers would be cheaper by Rs 8000-10000 if the GST rate was lowered to 18 percent.
He said the reduction of export incentives has come as a shocker for the industry, with Bajaj Auto itself having lost Rs 300 crore due to the ceiling on export incentives.
He said the government should focus export incentives on companies that have the scale to become global players.
First Published: Aug 26, 2020 11:53 AM IST
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