Budget 2019 :Hope for New Vehicle Policy
Internet Desk :Being an interim budget, much more expectations are being made from all aspects. General sense is the populist budget that satisfies the large salaried sections and farmers. In the wake of reforms in the financial year 2017-18, there was unprecedented growth in brand India. Despite the increase in oil prices, weak rupee, and the fears of a global trade war, the country’s sovereign credit rating was BAA 2 and India on the ‘Is of Driving Business’ parameter was ranked 100th out of 190 countries.Need to speed up the country’s economy, especially the vehicle sector, because it contributes more than 7 percent in GDP and it can prove to be a game changer.
Keeping in mind the implementation of the Demonetization and GST , the recent growth rate data is considered . And we will have to maintain the pace of growth rate to maintain our position, for this it will have to promote investment in infrastructure and continue the reforms on a large scale.
India is very sensitive economy in terms of price, where the growth rate in double digits is needed. It is expected that the vehicle segment will be regular with a similar GST rate, where additional cess will be levied only on luxury vehicles. At present, the maximum GST rate of 28 per cent is applicable on the vehicle sector .
Smart or automatic vehicles can also be given the benefit of tax relief. Electric vehicles will be taxed lower, possibly 5 percent. In addition to making them viable, road tax can be totally exempted.
It has been suggested in the budget that the registered vehicles before the year 2000 should be scrapped in the country. Because about 80 percent pollution and road accidents are due to old vehicles, which are more than 15 years old. The industry has proposed that the vehicle owners should be encouraged once to scrap their vehicles.