Corporate Tax Rate cut along with reduction in GST on electric vehicles were some of the few welcome steps initiated by the government last year. For the coming year we urge the government to address the supply demand gap in natural rubber a critical raw material of the tyre industry. We request the government to reconsider the GST component in tyre pricing, also relook at relaxation in GST for two-wheelers. Steps to curb rising raw material and fuel prices will aid both vehicle manufacturers and auto component makers in the long-term. Some of the other focus areas are to strengthen the required road & transport infrastructure. Reviving the rural economy can help tackle the current slowdown.
While the government is taking steps to improve supply of goods & services, we expect the government to take steps to increase the demand by making more liquidity portion available in the hands of consumers.
Expectations from Union Budget — Making more liquidity available in the hands of consumers is expected: P Srinivasavaradhan
The Union Budget 2020-21 is important on the backdrop of the current economic slowdown. It is expected to play a crucial role in pumping in enthusiasm and set the right tone for the coming financial year. Here is the industry’s view point.
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