The Federation of Automobile Dealers Associations (F A D A) has given its Budget Recommendation to the Honourable Finance Minister Smt. Nirmala Sitharaman.
Commenting on the suggestions, F A D A President, Mr. Ashish Harsharaj Kale, stated, “India nowadays has a passenger automobile penetration of twenty-two motors according to 1000 people while China has 164 vehicles in line with a thousand people. To even reach the levels that China has accomplished, India needs to feature at least 25000-50,000 Auto Dealer Outlets or extra in the next 10-15 years. This will result in the requirement of not simply Additional Working Capital but Capital for Infrastructure to the song of Thousands of Crores and additionally Additional Workforce to the music of one Crore for brand new outlets!”
F A D A President said, “Today the Auto Dealers Have 25,000+ Outlets spread across the remotest corners of our Country supplying Direct Employment to twenty-five lakh People and some other 25 lakhs in Indirect Employment, without displacing them far from their Homes and Family and ensuring an Inclusive Social Employment.
To ensure the Long-Term Sustainability of Our Community, we’ve recommended few Proposals for a few good deal-wanted Support for the Auto Dealer Community and the Auto Industry as an entire.
Our foremost request, among others, is to be considered underneath MSME on an instantaneous foundation and Consider Industry Status inside the Near or Mid-term to Our area.
Today best, the Auto Workshops have been saved out of the MSME Category, no matter Qualifying and following all Regulations required as an MSME beneath all Parameters. We are quite Hopeful that the equation can be considered looking at the Overall Contribution in addition to the Importance and Need of the Auto Retail Sector in our Country’s Overall Economic Progress.
The Auto Retail area, no matter its large Contributions does not avail of any Incentive or Support underneath any Category Currently.”
Talking approximately the support for the Auto Industry, Mr. Kale stated, “The Indian Auto Industry goes via Turbulent Times and Needs Support and a renewed cognizance as being an essential Wheel in our Nation’s Economic Progress.
Current Economies with Global Leadership have continually Looked at the Auto Industry as an Economy Builder and consider it because of the Barometer of Their Country’s Economic Performance. If the Industry is doing good, the Nation’s Economy is also doing precisely. The Same holds genuine for Our Country and searching at the Contribution Of the Auto Sector to the Manufacturing GDP and Overall GDP. We’ve asked the Government to Consider Some Bold measures on this budget to assist get the Industry back to Growth Trajectory without Compromising at the tons required Safety and Emissions Standards.
We have Requested the Government to Do this using Regulating Downwards the Overall GST and/or the Cess charged to Automobiles. We trust that Doing so will create a Positive Consumer Sentiment and Better Affordability in Automobiles that have seen exceptional Price Hikes currently and could do so inside the destiny too, due to stricter, but a great deal required regulatory norms.
A Higher Auto Demand can even Trigger a Positive Rippling Effect on many other Allied and Related Sector and could augur properly for the Overall Economy.
The Other most important request to Revive Growth within the Auto Sector is to announce an Attractive Incentive Policy to inspire Scrappage of Older Vehicles which nowadays are the primary contributors to vehicular Pollution and Road Safety Concerns. A hit Implementation of the Voluntary Policy will similarly Pave the Way for a Mandatory Scrappage Policy within the Future.”
The Federation, in its tips, have requested the Finance Minister to consider the subsequent problems for Sustainability of the Auto Dealer, in addition, to assist Revive the Growth of the Auto Industry:
Dealer Issues
Automobile Dealers Workshops & Service Stations should be included under the ambit of MSMED Act 2006 because the subsidies and incentives received underneath this act will provide a lot wished remedy to Automobile Dealerships which give 25 lakh direct employment to human beings near their home places without displacing them. It will even assist the world with loans with lowered interest costs, thus boasting the alternate similarly.
Reduction in Corporate Tax for Proprietary & Partnership Firms in similar lines to what the Government has finished for brand new small Pvt. Ltd. Companies with a turnover of up to Rs. 250 crores.
Eliminating debit and credit score card expenses handed on via the banks for transactions better than Rs. 5,000, specifically for Auto Dealers who paint on paper-thin margins to make the change feasible, and digital payments assist in Ease of Doing Business.
Exemption of Auto Dealers on Tax Collected at Source (TCS) inside the route of Inter Dealer / Re-Sell need to be delivered usa206C of the Act, and the definition of buyer needs to be appropriately amended to exclude such transactions.
GST Rates must be decreased to 5% on margins of all Pre-Owned Vehicles to create a win-win scenario for the Government, Auto Dealers, and Vehicle Owners
