SIAM Requests Indian Government To Reduce Taxes On Two-wheelers
Currently, Indians pay nearly 4 times more taxes on two-wheelers compared to other developing countries, hence, SIAM requested a tax reduction from the Government
SIAM Requested To:
- Reduce GST from 28 percent to 18 percent
- Reduce GST to 12 percent for CNG and flex-fuel bikes
- Remove 3 percent additional tax on 350cc and higher capacity bikes
The Society of Indian Automobile Manufacturers (SIAM) has requested the Government of India to lower GST (Goods and Services Tax) rates on bikes and scooters from 28 percent to 18 percent.
The automotive body also requested the government to reduce taxes to 12 percent for CNG and flex-fuel two-wheelers to make them more accessible to the masses. This request comes ahead of the launch of the Bajaj CNG bike on July 17. Along with the tax reduction requests, SIAM also proposed the government remove the 3 percent cess (additional tax) on premium bikes above 350cc.
Making their point, SIAM said that customers in India pay 28 percent GST, along with road tax, insurance premium, and a 3 percent cess on premium bikes. This results in almost four times more tax burden as compared to other developing countries like Indonesia and Thailand, where the tax rate is only 7-11 percent.
During the Bajaj Pulsar NS400Z launch, the CEO of Bajaj Auto, Rajiv Bajaj also presented his views on the high two-wheeler tax in India. He said that the 28 percent GST on a two-wheeler is just too much compared to other countries and makes no sense. The request from SIAM can be one of the reasons for Bajaj to push the CNG bike launch to July, which was going to happen in June.
And we agree with SIAM as even the Hero Splendor Plus, which is the best-selling bike in India, costs Rs 75,441 (ex-showroom), and comes close to Rs 1 lakh on the road with all the taxes and insurance charges. At least, smaller commuter bikes are a necessity for the common man and should be easily accessible to the masses.
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