Mahindra Group Chairman Anand Mahindra on Wednesday said lowering the Goods and Services Tax on automobiles would help the Indian economy as the auto industry has a huge multiplier effect on small companies and employment.
On Twitter, Mahindra echoed calls from the auto industry for a GST rate cut on cars, bikes and scooters amid a prolonged sales slump.
What we're all searching for is the ‘Mt. Mandara' which can start the ‘Manthan' of the economy & get it spinning faster. I'm biased, of course,but the auto industry is one such ‘Mandara.' It has a huge multiplier effect on small companies & on employment. Lowering GST would help https://t.co/13SOajY3Lt
June 26, 2019Passenger vehicle sales in May fell 20 percent—the steepest decline in 18 years.
May was also the seventh straight month when auto sales fell. In fact, barring October last year, when sales were up 1.55 percent, auto sales have been in the negative in 10 of the last 11 months—indicating a prolonged auto sector slowdown. The dip last month is the worst since September 2001, when sales had dropped by 21.91 percent.
The Society of Indian Automobile Manufacturers has sought GST rate cut for all automobiles to 18 percent from 28 percent in Union Budget 2019 to overcome the auto slowdown.
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