FADA seeks 10 per cent tax cut on two-wheelers

The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms and the post Covid-19 effects in Bharat of India.

Two-wheelers parked in the parking space near the western entrance at the Tambaram railway station. (Photo | Ashwin Prasath, EPS) 

NEW DELHI: Automobile dealers’ body Federation of Automobile Dealers Associations (FADA) has written to the GST council seeking a 10% rate cut (from the current 28% to 18%) on two-wheelers to aid the struggling industry as a slew of price hikes in the last 6-7 years has made it unaffordable for many.

“The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms and the post Covid-19 effects in Bharat of India. Now is the opportune moment for the GST Council to reduce the GST rate on two-wheelers, making them more accessible for the common man,” said FADA President Manish Raj Singhania.

FADA’s appeal has been forwarded to the Finance Minister, chair of GST Council, all GST Council members, the Ministry of Heavy Industries, which supervises the automobile sector and the Ministry of Road Transport & Highways.