Hero MotoCorp Chairman Pawan Munjal has called for a reduction in GST on two-wheelers to 18 per cent from current 28 per cent, while lauding the Union Budget 2023-24 as the dawn of a new high-growth economy, ensuring India’s increased contribution to the global economy. The veteran auto industry leader noted that the two-wheeler segment, which has been witnessing subdued sales over the last few years, needs government support in terms of taxation.
“There is a clear case for reducing the GST slab from 28 per cent to 18 per cent for the two-wheeler category, which has been adversely impacted over the past few years. This category is a means of mass mobility and should not be clubbed along with the luxury and sin goods category for GST slabs,” Munjal said in a statement.
He also said: “Further, now that the GST collections are buoyant, I urge the GST council to take this up since this segment is an income multiplier and its growth will boost the economy.” Hero MotoCorp, the country’s largest two-wheeler maker, believes the focus on capital expenditure, agri-credit, infra-development credit, and lower tax slabs will result in higher disposable income in the hands of consumers and boost the growth of the auto sector, Munjal said.
Commenting on the overall Budget proposals, he noted that the focus on strengthening macroeconomic factors, with a balancing of old and new industries, traditional and tech sectors, rural and urban economy, fiscal prudence, and growth, will ensure inclusive and balanced progression for the country.
From a long-term point of view, there is also a clear focus on digitisation with three centres of excellence for AI (artificial intelligence) and green growth, Munjal said. “The stability of the policies, direction, and vision, as displayed through the budget today, will help the country continue to be a preferred investment destination,” he stated.
The investment focus on the ‘Saptarshi’ (seven priority areas of the government), particularly urban infrastructure, will help develop tier 2 and 3 cities to participate in the growth of ‘Bharat’ and the overall economic growth of 7 per cent, he noted.
Munjal said that the finance minister presented an inclusive budget with a vision to develop Bharat and India and its various constituents simultaneously.
“It focuses on human capital through women empowerment, education, and investment behind youth power; rationalisation and fillip for the economy through initiatives for startups, and MSMEs, and capital outlay in urban and rural India,” he added.
The Rs 20-lakh crore agri credit support will power the rural economy into high gear while the Rs 10-lakh crore capital investment outlay will also aid growth and job creation for the youth, Munjal said.
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