Wednesday, June 11, 2014
By Kamal Swami
Automakers expect favorable announcements from Union Budget
The Indian car market has been witnessing dip in sales since last year and despite of various efforts adopted by car makers the situation do not seems to be improving in coming months. Although as an impact of decline in excise duty in the interim budget presented by UPA government it was expected that the situation will improve, but even it could not succeed in improving the condition. Going through all these concerns the Federation of Automobile Dealers Association (FADA) has requested the government to offer huge relaxation in taxes for the benefit of auto industry in its forthcoming Finance Budget.
The federation expects the government to continue the reduction in excise duty offered in interim budget. In the document pertaining to expectations from budget submitted to Finance Minister Honorable Mr. Arun Jaitely, federation has requested to continue the reduction of 12 percent excise duty on all types of passenger cars despite of their size, engine and fuel efficiency. Apart from this the federation also expected some sorts of other tax benefits including increasing depreciation allowance on passenger vehicles.
The federation also expected an enhanced depreciation allowance of 60 percent on purchase of commercial vehicles for two years in upcoming Union Budget. With this the federation has also requested the depreciation allowance on commercial vehicles purchased as replacement of vehicles which are older than 15 years to be increased to 60 percent for renewal and up-gradation of transport vehicles and retaining growth.
