Umbrella organisation of automakers SIAM on Friday welcomed the GST rates for automobiles saying the new tax rates would help in stimulating demand.
“The rates are as per the expectations of the industry and almost all segments have benefited by way of a reduced overall tax burden in varying degree,” Society of Indian Automobile Manufacturers (SIAM) president Vinod Dasari said in a statement.
It will stimulate demand and strengthen the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26, he added.
The Government has done well to ensure stability in taxation while at the same time moderating the taxes, wherever they were too high, Dasari said. He, however pointed out that differential GST for electric vehicles would also help electric mobility to gain momentum in the country.
“We would have liked to see a similar differential duty on hybrid vehicles to continue,” he added.