Discussion required on certain tax slabs under GST: SIAM President

ANI | Updated: Oct 09, 2017 18:35 IST

New Delhi [India], Oct. 9 (ANI): The President of the Society of Indian Automobile Manufacturers (SIAM) Abhay Firodia on Monday stated that while the Goods and Services Tax (GST) as a policy comes with a learning curve, there is still a need for a certain moderations to be made with regards to the rates and subsequent items under these slabs.

"There has been no flip-flop in terms of the policy. The government has always been consistent. As a taxation structure, there is a learning curve with GST. However, certain rates need to be moderated. Some amount of dialogue and correction is necessary to this regard," Abhay Firodia said while addressing a press conference here.

Firodia opined that a lot of ground work needs to be done before the motive can be achieved. Further, he said there is a need to bring everyone on one platform and achieve a common understanding.

"It will take years before we can establish electro mobility; however, we need to make a start somewhere. SIAM welcomes the prospect of electro mobility. It is a complex subject, which needs clarification from the Centre. However, the dialogue has been established," he said.

With regards to hybrid vehicles, Firodia stated that it cannot be the final solution, but rather a 'passing phase' before electro mobility is achieved.

"There is a need to create enough infrastructure, technology and jobs to support the new phase. Once achieved, things will move forward," he added.

Earlier in the day, SIAM results reported that the Indian automotive industry witnessed a double-digit growth of 10 percent in September 2017, driven by the festive season sales.

The two-wheeler sales reported a growth of 9.05 percent, while three-wheelers grew by 19.08 percent.

Similarly, in August 2017, three-wheelers grew at 2.51 percent and two-wheelers were at 14.69 percent.

Domestic sales in the passenger vehicle segment grew by 11.32 percent to 309,955 units on the back of growth in the utility vehicle segment at 26.21 percent to 84,374 units, while passenger car sales were up 6.86 percent, and vans by 3.72 percent.

Meanwhile, scooter sales surged by 13.19 percent, and motorcycle sales by 6.98 percent. (ANI)