The industry body has also sought from the Finance Minister Arun Jaitley a special tax rate of 12 percent for electric and hydrogen fuel cell powered vehicles.
Automobile industry body SIAM is seeking two tax rates for passenger vehicles under the GST regime instead of multiple rates levied currently, as part of its wish list for the upcoming budget.
The industry body has also sought from the Finance Minister Arun Jaitley a special tax rate of 12 percent for electric and hydrogen fuel cell powered vehicles.
“The automotive industry has been suggesting two rates for cars in place of multiple tax rates, and requests the government to keep only two rates for vehicles under the GST regime,” Society of Indian Automobile Manufacturers (SIAM) said in its suggestions for the Union Budget 2018-19.
Currently, under the Goods and Services Tax (GST) regime, small petrol cars with engine capacity less than 1200cc attract 1 percent cess, while diesel cars with engine capacity of less than 1500cc attract 3 percent cess, on top of the 28 percent tax.
