Business

Automakers seek easing of tax rates

Industry meets FM over fast-tracking of car loans, job losses

Finance Minister Nirmala Sitharaman and representatives of the auto sector, on Wednesday, discussed the possibility of fast-tracking of loans to buy vehicles, and also the employment status of the auto sector in terms of job losses so far, said officials present at the meeting.

The sector also sought easing of tax rates to bolster demand. However, the Finance Minister said that the government would take a consolidated view and take steps only after it had a more complete view of the issues plaguing the major sectors, an official added.

Poor demand

“The auto sector representatives met the Finance Minister and laid out the issues that are affecting their sector,” the official told The Hindu. “The major issue they highlighted was that demand was poor, and that this was because customers were finding it difficult to secure loans.”

“The representatives and the Minister discussed the possibility of a fast-track loan programme for car loans and also for other consumer sectors,” the official added. “The employment issue was also highlighted, but the FM said the government will take a decision on all the issues only once all the sector meetings are completed and internal deliberations are done.”

“The meeting was a fruitful one in that every auto maker and component maker who attended was given ample time to speak,” a representative from the auto sector said on the condition of anonymity. “The meeting went on for three hours and all the sector’s issues were discussed.”

The auto industry is expected to submit a formal proposal with all their suggestions in a day or two.

Heavy Industries Minister Arvind Sawant and Minister of State for Finance Anurag Thakur, as well as senior officials of the Finance Ministry attended the meeting.

(With inputs from Yuthika Bhargava)

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Printable version | Jul 7, 2020 4:29:32 AM | https://www.thehindu.com/business/automakers-seek-easing-of-tax-rates/article28872318.ece

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