Auto sector revolted against the government for its attempt to impose higher tax on diesel powered cars, while concocting plans to cut down on duties on those imported from Europe. General Motors India President and Managing Director Lowell Paddock said that they expect a lot from the upcoming Union Budget and it is definitely not relate to increase in diesel tax. He also mentioned that it is not the right time for it. According to Paddock, there has been huge number of calls from varied quarters to tax diesel cars mentioning that subsidised fuel has been profiting the wealthier section of the society.
Most of the auto companies, including Ford India, have stated that their business policies for India can be impacted in case; the 'diesel tax' is implemented. The recently determined India-EU conference on exercising an all-inclusive free trade agreement (FTA) was meticulously trailed by the Indian auto industry as dropping of duty on imported automobiles was one of the main debate themes.
The Government has assured that it would preserve the interest of Indian auto makers in EU FTA. The auto industry would be anticipating similar kind of guarantee from the upcoming budget plan.
According to Chetan Kakariya, Senior tax professional in a member firm of Ernst & Young, the rationalization of tax arrangement may be attained by integrating manifold levies under Central Excise to a solo rate. He also added that drop in excise duty charges and abolishment of National Calamity Contingent Duty would escalate the effectiveness of Indian auto productions.
Despite the fact that the days are too early to foretell, Government may require planning ahead so as to make India a hub for auto manufacturing. This can be accomplished via coming up with a super-strong budget supporting the auto industry completely.