Press Esc to close

Simplify taxes on used cars, auto traders demand

Jan 18, 2017, New Delhi, DHNS 22:12 IST
 The auto sector struggled in 2016 due to 1% infra cess on small cars, 2.5% on select diesel cars, 1% luxury tax on premium cars, 4% tax on higher engine capacity cars announced in the Budget last year. Reuters File Photo.
Eyeing vast Indian middle market, automobile traders have demanded simplification of taxes on used cars under the proposed GST regime. Currently GST is silent about the used car industry.

It has also demanded that Finance Minister Arun Jaitley announce a subsidy on new vehicles for the buyers, who junk their old vehicles, in the Budget to be presented on February 1.

“There is too much disparity in used car taxation and policy across states. Simplification may reduce prices, fuel demand and drive better tax compliance. Tax rate for used cars should be lower than new cars, since the government would have already collected tax at the time of first point of sale,” said Mehul Agrawal, founder of CARS24, a used car selling platform, in an interaction with DH.

According to Agarwal, the used car industry in India is witnessing double digit growth each month. This is in contrast to the new car industry that has been affected by multiple issues like ban on high capacity diesel engines in NCR, increased taxes and much talked about demonetisation.

The auto sector struggled in 2016 due to 1% infra cess on small cars, 2.5% on select diesel cars, 1% luxury tax on premium cars, 4% tax on higher engine capacity cars announced in the Budget last year.

Demonetisation has further impacted the auto sector, he said, adding that the government should desist from imposing any new cess or taxes in the Budget this year on auto industry.

Go to Top

Photo Gallery
Smokes and flame comes out from the window after a high rise office building caught fire...

Smokes and flame comes out from the window after a high rise office building caught fire...

Officials of the Pakistani Anti-Narcotic Force destroy confiscated drugs and liquor in Lahore...

Officials of the Pakistani Anti-Narcotic Force destroy confiscated drugs and liquor in Lahore...

A view of illuminated Swaminarayan temple on occasion of Diwali in Surat...

A view of illuminated Swaminarayan temple on occasion of Diwali in Surat...

Students pose after lighting oil lamps around a 'Rangoli' outside their hostel...

Students pose after lighting oil lamps around a 'Rangoli' outside their hostel...

Jammu and Kashmir Chief Minister Mehbooba Mufti celebrates Diwali with orphans in Jammu...

Jammu and Kashmir Chief Minister Mehbooba Mufti celebrates Diwali with orphans in Jammu...

Prime Minister Narendra Modi celebrating the Diwali with the jawans of the Indian Army...

Prime Minister Narendra Modi celebrating the Diwali with the jawans of the Indian Army...

President Ram Nath Kovind greeting people on the occasion of Diwali festival at Rashtrapati Bhavan..

President Ram Nath Kovind greeting people on the occasion of Diwali festival at Rashtrapati Bhavan..

Devotees queued at Dakhheneswar Kali temple during Diwali festival in Kolkata...

Devotees queued at Dakhheneswar Kali temple during Diwali festival in Kolkata...

CPI(M) workers chant slogans at a protest rally outside BJP headquarters in New Delhi on Tuesday...

CPI(M) workers chant slogans at a protest rally outside BJP headquarters in New Delhi on Tuesday...

Woman teachers pose with Diwali greeting messages at a school in Moradabad on Tuesday...

Woman teachers pose with Diwali greeting messages at a school in Moradabad on Tuesday...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.