two-wheeler bike
Two-wheeler bike is a necessity in the current Indian era, not a luxury item. Therefore, there should be a decision to reduce GST on two-wheelers in the budget. A senior official of Honda Motorcycle and Scooter India (HMSI) said this. HMSI Director (Sales and Marketing) Yogesh Mathur said the industry could register single digit growth in the next financial year. He said there is a need to rationalize income tax to enable middle-income people to start spending again. He said motorcycle sales have not performed well compared to the scooter segment in the current financial year. This is due to softening of demand from the rural market due to many factors including delay in monsoon.
Tax is currently up to 31 percent
Asked about the industry’s demands for reduction in taxes on two-wheelers, Mathur said, “As part of the rationalization of GST, we are requesting the government to take care of this because two-wheelers are not really a luxury. It is a necessity for the mobility of our people.” He said that there is still no last mile connectivity in India and hence two-wheelers are still more of a necessity than a luxury. He said that in such a situation, 28 percent tax should not be imposed on two-wheelers, and the industry has requested the government in this regard. Under current rules, two-wheelers with up to 350 cc engine attract 28 percent GST, while vehicles with engine capacity above 350 cc attract three percent cess, taking the total tax payable to 31 percent.
Expecting concessions to the insurance sector
Insurance companies are hopeful that the upcoming general budget will provide them with several tax benefits including concessions for the insurance and healthcare sectors. Finance Minister Nirmala Sitharaman will present the general budget for the financial year 2025-26 on February 1. Naveen Chandra Jha, Managing Director (MD) and Chief Executive Officer (CEO), SBI General Insurance, said that initiatives like ‘Bima Sugam’ need regulatory and economic support to achieve the goal of ‘Insurance for All’ by 2047. hopefully. Sarabvir Singh, joint group CEO of PBFintech, the parent company of insurance platform Policy Bazaar and financial services platform Paisa Bazaar, advocated changes in tax rules under Section 80C and 80D in the insurance sector. He said, “One of the most urgent reforms in the insurance sector is the need to change the tax rules under Section 80C and 80D. Currently the limit for payment under 80C is Rs 1,50,000, which has not changed for the last few years.
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