New Delhi, Jan 14 (PTI) Ahead of the Budget, automobileindustry body SIAM has asked the government to restoreincentives given on research and development in the form ofweighted tax deduction to previous level.
In its pre-budget wish list, the Society of IndianAutomobile Manufacturers has also sought inclusion of certainimported electric vehicle parts in preferential tariff list tohelp promote the eco-friendly technology.
"When the government reduced the weighted tax deduction,it was stated that the corporate tax rate would be reducedfrom 30 per cent to 25 per but that hasn't happened," SIAMDeputy Director General Sugato Sen said.
From 2017-18 the weighted tax deduction on research anddevelopment (R&D) expenses has been reduced to 150 per centfrom 200 per cent earlier.
"What we have requested the government is that if thetax rate is not reduced then the incentive on R&D throughweighted deduction should be increased," he added.
Sen said such a step is required as many automobilecompanies in India are spending a lot on R&D expenses.
On electric vehicles, he said the industry has said thatimported systems and components that are not made in Indiamust be put under the preferential import tariff list.
"Already there is a list and we have added morecomponents to it," Sen said.
SIAM's demand comes in the backdrop of governmentpromoting electric vehicles in India targeting with a visionof 100 per cent electric for public transport and 40 per centelectric for personal mobility by 2030. PTI RKLMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.