The Honourable Finance Minister has delivered a balanced budget which will augur well for Overall Development and Economic Conditions as well as Social Inclusion of all citizens.
In particular for the Auto Sector, our budget expectations were high, looking at the Current State of the Industry as we were expecting specific measures in the budget to revive Growth in the Auto Industry and to that extent we are disappointed. Moreover, with an addition of cess on Petrol and Diesel leading to price hike by 1 rupee might impact Auto sales, especially in the Price sensitive 2wheeler segment
A spend of Rs 80,250 Cr for upgradation of Roads under PM Gram Sadak Yojna will definitely boost Commercial Vehicle Sales and with better connectivity will have a rub off effect on Overall Rural Auto Sales in the Longer term. Focus on ensuring regular funding to sound NBFC’s as well as allowing them similar treatment as allowed to Banks for Booking Interest Income, will help in bringing down the current liquidity crises and Provide some respite to NBFC’s, who play a very crucial role in Auto Sales Growth.
In these trying time when Auto Sales are struggling, raising the limit of 25% Corporate Tax from turnover of up to Rs 250 Cr to up to Rs 400 Cr will definitely boost sentiments towards doing business and will benefit some of our members. Although, Our demand of Covering Partnerships and Proprietary Concerns was not met, which would have benefited majority of our members, we will continue to Follow-up on the same and hope to get relief during the Budget in February 2020.
The Focus on EV, the benefits announced in Income Tax Rebate, the Intent to reduce GST on EV and the Budget allotted to FAME 2 spells the strong intent of the Government in ensuring Self Reliance on Our Countries energy needs and will benefit our Nation in the Longer Term.
We are extremely happy to note that on F A D A’s recommendation to remove Card charges, to further boost Digital Payments and bring in Ease of Doing Business has been considered by the Honourable Finance Minister and now no charges or Merchant Discount Rate’s (MDR’s) will be imposed on customers using Card Payment Options with Auto Dealers having Annual Turnover of more than Rs. 50 crore. F A D A will work towards getting this limit lowered to Rs. 25 Cr, so that it benefits the smallest of Auto Dealers as well.
F A D A Welcomes the Overall Positive and Inclusiveness of the budget and We hope that the measures taken will ensure a buoyant Economy at the earliest, resulting in Overall Higher Growth and as a result Growth in Auto Retails too.
-Mr. Ashish Harsharaj Kale, President, Federation of Automobile Dealers Associations ( FADA )
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