The highly anticipated budget has been revealed by the Modi-led Government. They have addressed several issues, however, we want to tell you what impact it has on the automotive industry. Here is a breakdown of what the budget tells us auto-enthusiasts.
The budget did not focus on most requests of automotive manufacturers they have, however, decided to speed up the implementation of GST( Goods and Service Tax). GST will be rolled out by 1st April, 2016, which is expected to bring in more investment and also create a demand.
The Government has decided to reduce corporate tax down to 25 percent instead of the earlier 30 percent. This also will be implemented in 2016 and now companies will have more money to invest in products.
Building better and reliable roads to connect India is also among their primary goals. In the Union Budget, it was decided that INR 79,000 crore will be kept aside for road infrastructure. This includes their ambitious dream of contracting 1,00,000 kilometre new concrete roads in India.
Manufacturers of electric vehicles found something to rejoice about, as INR 75,00,00,000 has been kept aside for their benefits. The experts believed there was a higher expectation in this segment as greener and cleaner India, is one of their goals. Excise duty concessions will be provided to electric vehicle manufactures, just as before.
Custom duty has been increased to 40 percent from the earlier 10 percent. Manufacturers that bring to India Completely Built Units of commercial vehicles will be affected by this change. This is expected to help local production of commercial vehicles in India.
The reduction in excise duty on vehicles was not addressed. This means that two-wheelers and four-wheelers will not be getting cheap anytime soon. The auto industry had been requesting for a revision for a while now, however, there is no relief on that part.