Tax rates on automobiles in the upcoming GST and monsoon will be crucial factors which will influence the rate of growth of the industry in the new fiscal, according to Toyota Kirloskar Motor.
The company said rising commodity prices are beginning to put pressure and it will take a review of the situation to consider pricing changes after April.
“The key factors for auto industry in the new fiscal is at what rates vehicles will be taxed under the GST and how monsoon will be this year,” N Raja, Toyota Kirloskar Motor director and senior vice-president, sales and marketing, told PTI.
After facing a lot of speed breakers in last fiscal, Raja was speaking to PTI on major challenges before the auto industry. He elaborated: “If the automobiles are taxed similarly under GST as it is today, it will not make much of a difference. However, if they are taxed more, prices will go up and will definitely have an impact on demand.”
The GST Council has already decided on a four-tier rate structure of 5, 12, 18 and 28% and a cess on the peak rate for demerit and luxury goods. The Lok Sabha has also approved four supplementary legislations — Central GST, Integrated GST, Union Territory GST and Compensation Law.
On monsoon, Raja said already reports of below normal monsoon have started to come, while the country is witnessing a heat wave.
Article Source: “http://www.hindustantimes.com/autos/gst-rate-monsoon-key-factors-for-auto-sales-growth-in-new-fiscal-toyota-india/story-qB2w81UJaTIBZ5bg7UAZJK.html”