Press Esc to close
Monday 26 June 2017
News updated at 8:13 PM IST

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
A black kite flies past during Sunrise in New Delhi...

A black kite flies past during Sunrise in New Delhi...

Bollywood actress Kajol with Soundarya and Dhanush during the trailer launch of film VIP 2...

Bollywood actress Kajol with Soundarya and Dhanush during the trailer launch of film VIP 2...

Pakistani women greet each others after the Eid al-Fitr prayers...

Pakistani women greet each others after the Eid al-Fitr prayers...

A Barbary lion cub, stands next to its father 'Schroeder' at the zoo in Neuwied, Germany...

A Barbary lion cub, stands next to its father 'Schroeder' at the zoo in Neuwied, Germany...

Winners of 8th Men Mega Mr. North East and 15th Miss North East 2017, Mary Khemlang (Center)...

Winners of 8th Men Mega Mr. North East and 15th Miss North East 2017, Mary Khemlang (Center)...

Bollywood actors Huma Qureshi and Dhanush during the trailer launch of film VIP 2 Lalkar...

Bollywood actors Huma Qureshi and Dhanush during the trailer launch of film VIP 2 Lalkar...

Muslims offering namaz at historical Taj Mahal on the occasion of Eid-ul-Fitr...

Muslims offering namaz at historical Taj Mahal on the occasion of Eid-ul-Fitr...

Obama and his family arrived last week on the resort island for a vacation...

Obama and his family arrived last week on the resort island for a vacation...

Smoke rises from the ground by charred trees near the access to the Cuesta Maneli beach...

Smoke rises from the ground by charred trees near the access to the Cuesta Maneli beach...

President Pranab Mukherjee receiving Eid greetings from various groups of people...

President Pranab Mukherjee receiving Eid greetings from various groups of people...

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.