Monday, January 15, 2018
By Manoj Kumawat
SIAM Expects Government To Continue R&D Incentives For Vehicles
Before the arrival of Union Budget in the month of February the autonomous body Society of Indian Automobile Manufacturers (SIAM) has requested the government to continue the incentives like weighted tax deduction given on the research and development for vehicles to its previous level in upcoming budget for the year 2017-18. The body has also required the government to offer reduction on the import of certain components for electric vehicles to encourage the development of eco-friendly technology. In the words of Mr. Sugato Sen, Deputy Director General, SIAM "When the government reduced the weighted tax deduction, it was stated that the corporate tax rate would be reduced from 30 per cent to 25 per but that hasn't happened,"
It is proposed that the weighted tax deduction on R&D for the development of electric vehicles would be reduced to 150% from the erstwhile deduction of 200%. According to Mr. Sen the society has requested government to increase the weighted tax deduction to the same percentage as allowed earlier, if the government do not reduces the corporate tax rate. In the words of Mr. Sen this step will provide some kind of financial assistance to the automakers in India working on R&D for development of new vehicles.
For electric vehicles, Mr. Sen said that the industry has requested to put the imported components used for the manufacturing of electric vehicles in the preferential import tariff list. It would be interested to know that the demand for SIAM has come at the time when government is promoting the use of electric vehicles in the Indian car market with 100% electric mobility within the country by 2030.
