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Tax On Car: Due to the heavy tax of the government, people in India are not able to buy cars because cars are becoming out of reach of the people. This is what the Chairman of Maruti Suzuki, A C Bhargava has to say. He said that the government’s policies are such that it treats cars as luxury items, due to which heavy taxes are imposed on cars.
Bad policies of the government harm the car industry
RC Bhargava said that the ability to buy a car is not related to the income of the people. Due to the wrong policies of the government, the growth rate of the car industry in India has come down from 12 percent to 3 percent in the last 12 years. He said that small cars have the highest regulatory burden which is the most important segment of the entire automobile industry. According to him, the regulatory burden and uniform tax structure for all segments of vehicles is hurting the sector. He said that the automobile industry cannot grow with 50 per cent tax. He asked, With 50 per cent tax in the whole world where is the growth of automobile industry? Comparing it with Europe and Japan, he said that the per capita income of these countries is much higher than that of India but the tax on cars is higher in India.
More regulations apply to small cars
RC Bhargava said that more regulatory rules apply to small cars than big cars, which is affecting the market. He said that the same number of people are not buying small cars now. RC Bhargava said that this is neither good for the car industry nor for the country. He said that for the growth of the automobile industry, it is very important for new customers to buy cars. It is very important to increase the number of people owning a car every year.
Elon Musk has also raised the question
RC Bhargava is not the first person who has raised questions about heavy tax on vehicles. Elon Musk of Tesla also raised the issue of heavy tax on imported vehicles in India in 2019. So in 2015, Toyota shelved India expansion plans due to high taxation.
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