Mahindra Group Chairman Anand Mahindra Wednesday said lowering GST on automobiles would help the economy, stating that the auto industry has a huge multiplier effect on small companies and employment.
In a tweet, Mahindra echoed calls from the auto industry to reduce goods and services tax (GST) on vehicles amid a prolonged sales slump, with passenger vehicle sales recording the steepest decline in nearly 18 years in May when it dropped by over 20 per cent.
“What we’re all searching for is the ‘Mt. Mandara’ which can start the ‘Manthan’ of the economy & get it spinning faster. I’m biased, of course, but the auto industry is one such ‘Mandara’. It has a huge multiplier effect on small companies & on employment. Lowering GST would help,” he said.
Earlier this month, the Society of Automobile Industry (SIAM) had sought reduction of GST on all vehicles to 18 per cent from the current rate of 28 per cent in the upcoming Budget.third-largest employer in the country.