The Indian used car industry has been on the rise rapidly, 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 along with demonetisation.
“We expect the upcoming budget to provide a much-required stimulus, else there will be further in the demand for new cars. Though, used car industry will not be disturbed, however being an industry player we envisage policies that bring an inclusive growth for the entire automotive industry,” said Mehul Agrawal- Founder, CARS24.
Here are five things that Cars24 wants from the upcoming Budget 2017:
1) Reduce cess/taxes to drive higher new car demand. “If not, the government, at least, should not increase the burden on the industry,” added Agrawal.
2) Subsidise new vehicles for buyers who junk old ones, or extend it further to other exchange transactions,” the company said in a statement.
3) Too much disparity in used car taxation and policy across states. Simplification may reduce prices, fuel demand and drive better tax compliance.
4) Simplification of taxes on Used Car across States in the form of GST. Presently, GST law is silent on the used cars segment. CARS24 wishes the rate for used cars should be lower than new cars. Since the government would've already collected tax at the time of the first point of sale (this is how it happens in VAT regime too) with lesser lifetime. Hence we believe the government should consider all these factors and maintain a parity while deciding the GST for used cars segment.
5) Further, we expect GST to unleash intercity used car movement. Due to the supply shortage in smaller towns and congestion problems in bigger cities, this would definitely provide a boost to the economy.
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