Following a historic mandate, the Modi-led government is now expected to shift its focus on the governance. Here are some key recommendations from the auto sector to the finance ministry, as the focus shifts to government formation:
- The industry expects the government to reduce the GST rates from 28 percent to 18 percent across categories of automobiles.
- More than 40 percent of vehicles on the road were registered before 2000 and all these vehicles need to be scrapped.
- Industry bodies are suggesting an incentivising model where one gets the scrap value as well as some reduction in the GST rate on the purchase of a new vehicle.
- They expect a reduction in the corporate tax rate to 25 percent for all companies.