Two rates on auto wish list
New Delhi: Automobile industry body Siam is seeking two tax rates for passenger vehicles under the GST regime instead of multiple rates levied at present, as part of its wish list for the upcoming budget.
The industry association has also sought from the finance minister Arun Jaitley a special tax rate of 12 per cent for electric and hydrogen fuel cell powered vehicles.
"The automotive industry has been suggesting two rates for cars in the place of multiple tax rates, and requests the government to keep only two rates for vehicles under the GST regime," the Society of Indian Automobile Manufacturers (Siam) said in its suggestions for the Union Budget 2018-19.
Under the goods and services tax (GST) regime, small petrol cars with engine capacity less than 1200cc attract 1 per cent cess, while diesel cars with engine capacity of less than 1500cc attract 3 per cent cess, on top of the 28 per cent tax.
Similarly, the cess on hybrid cars, including mid, large and SUVs, remains at 15 per cent, likewise those on vehicles used for the transport of not more than 13 passengers.
The industry has also urged the government for tax on used cars to be fixed at 5 per cent GST on the differential value between the sale and purchase price of the used car. PTI