Budget 2025: Preparations for the Union Budget are in full swing. Finance Minister Nirmala Sitharaman will present the budget in Parliament on February 1. Several tax relief measures are expected in this year’s budget.
In this context, Hero MotoCorp CEO Niranjan Gupta on Wednesday sought a reduction in the Goods and Services Tax (GST) on two-wheelers with engine capacity up to 125 cc, saying these vehicles are the primary mode of transport for the general public in India.
He mentioned that, while GST is not technically a subject of the Union Budget, there is a strong case for reducing GST on two-wheelers, especially those up to 125 cc, from 28% to 18%, as they are essential vehicles for the common people.
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Budget 2025: Call to Reduce GST on Two-Wheelers to from 28% to 18%
Currently, a uniform GST rate of 28% is applicable on all types of two-wheelers. Gupta emphasised that two-wheelers are not luxury items but the primary mode of transport for common people in India. He pointed out that entry-level two-wheelers contribute significantly in generating both direct and indirect employment.
Therefore, he suggested that GST on two-wheelers, especially those up to 125 cc, should be reduced to 18%. Additionally, Gupta emphasised that the government should continue on the path of long-term growth, stability and investment to sustain growth in capital investment. He also advocated for expansion of employment generation schemes.
Budget 2025: New Policy Needed for Pre-Owned Two-Wheelers
Narain Karthikeyan, Founder, DriveX has called for a new policy for the pre-owned two-wheeler industry in the 2025 Budget. Similarly, Samrath Singh Kochar, Founder and CEO, Trontek, expects strong incentives for the electric vehicle (EV) and energy storage sectors in the upcoming Budget. He emphasised the importance of continued incentives for the development and adoption of advanced battery technologies, which will ensure self-sufficiency and reduce dependence on imports.
Additionally, support for sustainable energy storage solutions will not only empower the EV sector but also benefit other sectors such as renewable energy and backup power systems.
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