Govt should review GST rates on vehicles powered by clean fuels: Rajiv Bajaj
Bajaj Auto Managing Director Rajiv Bajaj on Friday suggested that the government review GST rates on vehicles powered by clean fuels. At the launch of the first integrated motorcycle Freedom 125 here, Bajaj also voiced concerns about the use of "unsustainable subsidies" to promote electric vehicles (EVs).
Earlier, he, along with Union Minister for Road Transport and Highways Nitin Gadkari, launched the world's first CNG-run bike in three variants at a starting price of Rs 95,000 (ex-showroom). "I would call it a suggestion that the government should seriously review GST rates... Just as they've done the right thing with the 5 per cent GST for electric (vehicles)," Bajaj said.
He said in the major two-wheeler markets in Latin America and ASEAN countries, the equivalent of GST was 8-14 per cent and almost without exception, the GDP per capita was equal to, or higher, in these countries than India.
"So, the aam aadmi (common man) of India is the one who can afford the least out of Thailand, Malaysia, Indonesia, Brazil, etc. Then what is the logic, justification of 28 per cent GST," he asked.
