Finance Ministry tells auto makers, if you want GST rate cut, bring states on board

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Updated: September 6, 2019 2:36:58 PM

With automobile sales seeing a slowdown, Finance Ministry has asked the manufacturers and equipment makers to bring states on board to find a solution to the problem.

NITI Aayog, Auto sector, job losses, govt intervention, auto sector growth, industry newsTalking about the dip in sales in the sector, Anurag Thakur said that the government is working closely with the automobile firms to boost demand.

With automobile sales seeing a slowdown, Finance Ministry has asked the manufacturers and equipment makers to bring states on board to find a solution to the problem.The auto makers and OEMs (Original Equipment Manufacturers) should update the states about the challenges being faced by them, TV news channel ET Now showed Anurag Thakur, Minister of State for Finance and Corporate Affairs, telling the reporters. Even as the government is open to talks on auto GST rate cut, the states must also be brought on the same page for a consensus to emerge in the next GST Council meeting, he added.

Talking about the dip in sales in the sector, Anurag Thakur said that the government is working closely with the automobile firms to boost demand. The government is confident that the automobile industry would soon bounce back strongly, he noted.

Borrowers must watch for this even as RBI mandates banks to link loans with external benchmarks

“I think it makes a lot of difference how you see things. I see today there is a lot of opportunity for the automobile segment,” he said. Even as these are challenging times, there are many opportunities coming our way in several segments including space technology, he added.

With automobile sales on a downward trajectory for nearly a year, the automobile firms have been asking the government to either cut down the GST, or offer some other financial relief so as to boost demand. In July, the wholesale dispatches of passenger vehicles dropped 31 per cent to 200,790 vehicles as against the year ago period, SIAM (Society of Indian Automobile Manufacturers) data showed. It was the sharpest fall since the 35 per cent fall in December 2000. Similarly, the ninth consecutive fall was seen in the monthly wholesale passenger vehicle sales in the month of July.

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