Government may release draft auto policy in 2 months: Geete

Speaking at the inauguration of the 14th Auto Expo, the minister said suggestions from all stakeholders will be taken in order to come up with an industry and consumer-friendly policy. Geete also said though the first phase of FAME scheme is coming to an end in March, efforts are on for its continuation in second phase and how to make it even more successful.

Responding to the demand from industry to rectify taxation issues on different categories of vehicles, Geete said his ministry has been getting several representations from the industry and the new auto policy will look to address those concerns. The new auto policy will be a foolproof, industry and consumer friendly one and the draft will be ready in two months, he said. 

“While framing the policy we will take suggestions from industry bodies like SIAM and ACMA,” Geete said, adding changes in taxation as demanded by the industry would be covered. The auto industry has been demanding lower GST rate on electric vehicles at 5 per cent, down from current 12 per cent.

Besides, there has been call for only two GST slabs for passenger vehicles instead of multiple rates in the current structure. While admitting that there seems to have been a rush in going for BS-VI emission norms by leapfrogging BS-V, Geete however said the industry must be ready to accept the challenge of change and adopt new technologies and the government will support them in the endeavour. 

With new technologies, the cost to customers will increase and companies must ensure that the end buyers are not heavily burdened, he pointed out. Addressing the gathering at the inauguration, Society of Indian Automobile Manufacturers (SIAM) President Abhay Firodia said despite the GST implementation, many local taxes at state level have prevented transition into a completely uniform taxation regime across the country and Centre must take steps to address such issues.

The auto industry has to deal with several ministries regarding various issues, he said noting that the proposed single nodal body, National Automotive Board must be set up soon. On the challenges of BS-VI transition, Firodia said the Centre should allow companies to sell their BSIV products even after April 2020 deadline unlike past case of BS-III, when sales were abruptly stopped.