Last updated: February 07, 2023, 6:16 PM IST
Pawan Munjal, chairman of Hero MotoCorp, has called for VAT on two-wheelers to be reduced to 18 percent from the current 28 percent, while touting the Union’s budget for 2023-2024 as the start of a new high-growth economy, which will boost the India’s greater contribution to the global economy. The veteran auto industry leader noted that the two-wheeler segment, which has seen modest sales in recent years, needs government support on the tax front.
“There is a clear case for lowering the GST plate from 28 percent to 18 percent for the two-wheeler category, which has been negatively impacted in recent years. This category is a means of mass mobility and should not be clubbed together with the luxury and sin goods category for GST plates,” Munjal said in a statement.
He also said, “Furthermore, with GST collections exuberant, I urge the GST council to address this as this segment is a revenue multiplier and its growth will boost the economy.” Hero MotoCorp, the country’s largest two-wheeler manufacturer, believes the focus on capital spending, agricultural credit, infrastructure development credit and lower tax brackets will result in higher disposable income in the hands of consumers and boost auto sector growth, Munjal said.
Commenting on the general budget proposals, he noted that the focus on strengthening macroeconomic factors, balancing old and new industries, traditional and tech sectors, rural and urban economies, fiscal prudence and growth, will ensure inclusive and balanced progress for the country.
From a long-term perspective, there is also a clear focus on digitization with three centers of excellence for AI (artificial intelligence) and green growth, Munjal said. “The policy stability, direction and vision as reflected in the budget today will help the country remain a preferred investment destination,” he said.
The investment focus on the ‘Saptarshi’ (seven priority areas of the government), especially urban infrastructure, will help develop level 2 and 3 cities to participate in the growth of ‘Bharat’ and the overall economic growth of 7 percent, he noted.
Munjal said that the finance minister presented a comprehensive budget with a vision to develop Bharat and India and its various parts simultaneously.
“It focuses on human capital through women’s empowerment, education and investment in youth power; rationalization and strengthening of the economy through startup and MSME initiatives, and capital spending in urban and rural India,” he added.
The Rs 20-lakh crore agricultural credit support will kick the rural economy into high gear, while the Rs 10-lakh crore capital investment expenditure will also contribute to growth and job creation for the youth, Munjal said.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)