All eyes on Budget 2019 as it is going to set market direction going ahead
The Society of Automobile Industry (SIAM) wants the government to reduce the current tax incidence of 28 percent for all categories and bring it down to 18 percent to spur demand in the current sluggish market.
Also, in September 2017, the cess was increased to 17 percent, 20 percent, and 22 percent from the earlier rate of 15 percent for mid-sized and large (luxury, SUVs, and MUVs) passenger cars. This cess rate can be revised downward to provide the required push to the auto industry.
Budget Expectations:-
We expect Budget 2019 under Modi Team 2.0 will focus on re-introduction of tax-free infra bonds and would announce some income tax sops for the middle class. Overall we expect this budget to be pro-growth which would fuel engine and add stimulus to an economy that has slowed sharply this year.
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