Federation of Automobile Dealers Association (FADA) has urged the new government to show leniency towards the automotive sector in the upcoming union budget. The automobile dealers across the nation have been witnessing slump in sales for the last couple of months and hence are looking for respite in the upcoming union budget.
The federation is hoping that the excise duty cuts announced in February by the former FM during the interim budget should be retained in the regular Union Budget to be announced shortly by the current FM, Mr. Arun Jaitely. Last week FADA submitted the pre-budget expectations to the current Finance Minister. The federation also wants that all passenger vehicles should attract 12 per cent excise duty irrespective of their size, fuel and engine capacity. Besides these, FADA also expects other issues to be noticed like rising depreciation allowance on passenger vehicles in all segments should be reduced to 33 per cent owing to decrease in ownership cycle and fall in prices of used vehicles.
Other issues for which FADA seeks relief in the upcoming Union budget include accelerated depreciation allowance of 60 per cent on the purchase of commercial vehicles for a time span of two years, like the one proposed in 2008 owing to the global financial crises. They also seek depreciation allowance on commercial vehicles bought for replacement of around 15 year old vehicles to be enhanced to 60 per cent. This will help to renew and modernize transport business and offer stability in growth. Besides eradication of the local body tax including Octroi, FADA also asked for a plan for the fulfillment of general sales tax.
