Mr. Joe King, Head, Audi India recommended a reduction in the excise duty on cars and sport utility vehicles (SUVs), apart from the simplification of the tax structure. While making recommendations for Union Budget 2016-17, Joe King said, “The Government had presented a budget with focus on long-term growth of the country in FY 2015-16 and we expect a similar budget this year which is Pro-growth. Improving consumer sentiment and creating demand is a priority for both the industry and the government, and we expect the forthcoming budget to address this.”
He further added that the simplification of tax structure will be a big step forward as currently differential pricing and taxes across states makes it very complicated. Therefore introduction of goods and service tax (GST) will go a long way in helping in ease of business. Reduction in excise duty on cars and SUVs will go a long way in boosting sentiments of the entire auto industry that accounts for a significant share of the country's manufacturing gross domestic product (GDP) and is one of the biggest job creators, both directly and indirectly.
King also added that “Continued focus on improving the road infrastructure is also a prime area of interest for the entire auto industry. We are happy to note that the GDP growth in FY17 is likely be between 7 and 8 percent, which is impressive in the current global scenario. We are looking forward to a revival in customer sentiment which would contribute to higher consumption.