While nation is awaiting for budget 2019 tomorrow (5 July 2019), Mr Martin Schwenk, MD & CEO, Mercedes Benz India has shared a quote on budget expectations.
Martin Schwenk, MD & CEO, Mercedes-Benz India:
Given the favourable outcome of GST in terms of rising revenue, we wish the Government would reconsider the rationalization of GST rates for cars which currently attracts 28% GST and 17-22% Compensation Cess. We recommend a downward revision of GST rate on all cars to 18% from 28%, and a proportionate reduction of CESS to around 15% for all cars above 4 meters. This will act as a much needed catalyst for growth of the industry, especially when it is facing subdued customer interest due to multiple factors like rise in insurance costs, inflationary hikes, liquidity crunch and forthcoming price increase due to BSVI implementation. To revive the slowing down auto sector, we also recommend to consider offering ‘depreciation’ benefit on vehicles to individuals
What’s your expectation from Budget 2019? Do let us know by commenting below.