auto parts makers hope new govt will slash their gst rates | ludhiana news - times of india
Businessmen in the industry hope that the next coalition government, set up about a month later, will pay attention to these issues.
According to the city\'s merchants, the main problem facing the auto parts industry is the highest tax rate of 28%, so their sales have been hit.
In addition, the industry faces several other unresolved issues.
According to gurpagat Singh Karon, chairman of the Automotive Parts Manufacturers Association: \"Exports of automotive parts have been declining for quite some time, this is because the coalition government has not introduced a new incentive plan for the industry, and while the existing tax refund is the only incentive for auto parts exporters, we cannot be supported by any means.
We hope that when the new government is established at the center, our needs will be investigated and that the situation in the industry will change.
Kahlon added: Since the launch of the GST, our investment in the business has increased a lot.
We hope that the next government will reduce the tax rate on goods and services in the industry to 5%, thus achieving a win-win situation.
Win the situation for manufacturers and customers.
According to Jaswinder Thukral, president of Janta Nagar small-scale manufacturers association, another auto parts manufacturer: Although there are several items in our industry that apply a 18% GST, the biggest problem in our industry is the 28% tax on goods and services, which leads to other problems.
Demand for auto parts must have been hit by such a high tax rate.
Lakhs of our capital rupee is still being blocked by the government in the form of a refund of goods and services tax.
If that were not the case, we would use the money to increase our sales.
Thukral added: \"I don\'t think the current central government is in the mood to give any relief to our industry and to do so deliberately for unknown reasons.
But now, time is about to change, and a month later, the new government, led by Congress, is expected to be set up at the center, and our industry will definitely get the relief it needs.
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