Why 28 percent GST on two-wheelers? Rajiv Bajaj attacks the central government!
Rajeev Bajaj, managing director of Bajaj, has criticized the central government. Pointing out that increased regulations on safety and emissions have driven up the prices of automobiles in india, Bajaj's managing director Rajiv Bajaj has called for a reduction in GST on motorcycles. Speaking at the launch of the Pulsar NS400Z at Bajaj's pune plant on Friday, Rajiv Bajaj pointed to BS VI and ABS norms as the reason for the dramatic change in vehicle prices over the past few years.
Rajeev Bajaj said the price of passenger motorcycles has gone up due to more regulation and higher taxes. “Before BS VI and ABS became mandatory, the Pulsar 150 bike was priced at Rs 71,000. Today the price of the same motorcycle is Rs. 150,000. The government has unduly increased the price of automobiles in india due to high taxation and restrictions.” He said.
Rajiv Bajaj questioned why we have to pay 28 percent GST, you look at GST equivalent taxation in ASEAN countries. He said they are 8 percent and 14 percent. He also urged the central government to reduce the GST rate on two-wheelers to 18% or 12%.From april 2019, the central government made it mandatory for all two-wheelers with an engine capacity of 125 cc or more to have anti-lock braking system (ABS). From april 1, 2020 next year, the central government mandated BS6 emission norms, replacing the earlier BS4 norms.
Not opposed to fuel standards like BS6, but 28 per cent peak GST on two-wheelers? rajeev Bajaj questioned and insisted that the central government should reduce the GST tax on two-wheelers to 18% or 12%.Referring to Marie-Antoinette, queen of france during the French Revolution, Rajiv Bajaj asked, "Are we going to ask our people to eat cake?" He questioned. Marie-Antoinette, queen of france, said that when the starving peasants did not have a piece of bread to eat, they should eat cake. Rajiv Bajaj quotes this story to explain his understanding of hunger."Rs 1 lakh is too much for a common man," said rajeev Bajaj, “This can be mitigated by reducing the running cost of the vehicle. That is why we have a two-pronged strategy of electric and cng in entry-level motorcycles and scooters.” said.
