Union Budget 2019: Automobile sellers body seeks enterprise status for automobile retail zone

Mumbai: Automobile sellers’ body FADA on Thursday advised the authorities to recollect industry reputation for the auto retail quarter, as a step to help it avail easy to budget and maintain a business in the long term.

Suggesting a slew of measures to Finance Minister Nirmala Sitharaman for the growth of the industry and car retail zone beforehand of the Union Budget, the Federation of Automobile Dealers Associations (FADA) additionally sought to decrease GST to 5 percent on margins of all pre-owned cars to create a win-win situation for all stakeholders. The Federation claims representation of a few 25,000 automotive dealers across India. “Our principal request, amongst others, is to consider vehicle retail below MSME on a direct basis and industry fame in the near or mid-term,” FADA President Ashish Harsharaj stated.

Granting of enterprise status will deliver higher financing options because the zone is capital-intensive in nature, it said, adding there are various other blessings which include priority lending from banks, external industrial borrowings, clean financing from pinnacle creditors, access to PE investments, less complicated access to domestic and global price range, and better tax blessings, amongst others. The Federation has also sought a reduction in company tax for proprietary and partnership companies, besides searching for the removal of debit and credit card expenses incurred with the aid of the banks for transactions exceeding Rs. 000, specifically for automobile dealers who work on paper-thin margins. According to the Federation, India needs to feature at the smallest 25,000-50,000 or different automobile dealer shops inside the next 10-15 years, for you to result in the requirement of not just additional operating capital but capital for infrastructure to the tune of heaps of crores, it said. According to FADA, it may also require the different groups of workers to make music for one crore humans for the brand new shops.

Requesting the government reduce the overall GST and the cess charged to cars, FADA said, “We accept that it will create a tremendous purchaser sentiment and better affordability in motors, which have seen extraordinary fee hikes presently.” The Federation has additionally demanded the announcement of an attractive incentive policy to encourage the scrappage of older automobiles and revive the boom within the automobile industry.