Hero MotoCorp Pitches For 18% GST On Two-Wheelers
Hero MotoCorp Ltd. today called for reduction in the goods and services tax rate on bikes and scooters to 18 percent from 28 percent.
India’s largest two-wheeler maker, which ended last year with record sales of over 80 lakh units, said the reduction in tax would provide the much-needed relief to two-wheeler customers across the country.
“Given that two-wheelers provide basic mobility to the masses, there is an urgent need to reduce the GST rate on two-wheelers from the 28 percent bracket of luxury goods’ to that of 18 percent for mass usage items,” Hero MotoCorp Chairman Pawan Munjal said in a statement.
The reduction in tax rate would not only help millions of two-wheeler customers, but also the entire value chain dependent on the sector, he said.
“It is absolutely imperative to ensure growth in the auto sector to create and sustain inclusive economic growth,” Munjal said, adding with transition to BS VI emission norms, cost of two-wheelers will further go up.
“All these will put severe stress on the extremely cost-sensitive commuters, for whom the two-wheeler is a lifeline,” Munjal said.
Terming 2018 as a challenging year, he said while the continuing volatility in currency and commodities slowed down the pace of growth, the global geopolitical and trade conflicts also affected sentiments in markets and industries across the world.
Commenting on domestic market, Munjal said the increased cost of two-wheeler insurance ahead of the festive season and the prevailing liquidity crunch in the market impacted the overall of growth in the industry during the entire third quarter.
On sales outlook for the remaining part of the fiscal, he said that with an improved liquidity in the market, and the upcoming festive season in many parts of the country, the industry is expecting a positive turnaround in the fourth quarter.
In the calender year 2018, Hero MotoCorp sold 80,39,472 units of bikes and scooters, registering a growth of 11 percent over 2017.
In the April-December period of the ongoing financial year, the company sold a total of 60,37,901 units, it said.
In December 2018, the company sold 4,53,985 units compared with 4,72,731 units a year ago.