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    Sunday, July 14, 2024

      Society of Indian Automobile Manufacturers (SIAM) Requests Indian Government To Reduce Taxes On Two-wheelers

      Society of Indian Automobile Manufacturers (SIAM) has request the Government of India to lower Goods and Services Tax (GST) rates on bikes and scooters from 28% to 18%.

      SIAM also request the government to reduce taxes to 12% for CNG and flex-fuel two-wheelers to make them more accessible to the masses.

      This request comes ahead of the launch of the Bajaj CNG bike on 17th July 2024.

      With the tax reduction requests, SIAM also propose the government remove the 3% cess (additional tax) on premium bikes above 350cc.

      SIAM said that customers in India pay 28% GST with road tax, insurance premium, and a 3% cess on premium bikes.

      This results in almost four times more tax burden as compare to other developing countries like Indonesia and Thailand, where the tax rate is only 7% to 11%.

      Rajiv Bajaj, CEO of Bajaj Auto, also present his views on the high two-wheeler tax in India.

      He said that the 28% GST on a two-wheeler is just too much compare to other countries and makes no sense.

      This request from SIAM can be one of the reasons for Bajaj to push the CNG bike launch to July 2024, which was going to happen in June 2024.

      For example, the Hero Splendor Plus, which is the best-selling bike in India, costs Rs 75,441 (ex-showroom), and comes close to Rs 1 lakh on the road with all the taxes and insurance charges.

      ALSO READ  GST Collections Rise 12% to Rs 1.57 Lakh Crore in May 2023 | Details Inside

      Smaller bikes are a necessity for the common man and should be easily accessible to the people of India.

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