The Hindu : Dealers seek lower duties

Online edition of India's National Newspaper
Friday, Oct 11, 2002

Business

Business

Dealers seek lower duties

By Our Corporate Reporter

CHENNAI OCT. 10. The sluggish growth in the motor vehicle sector has forced the manufacturers to adopt cost effective measures.

Addressing a press conference here in connection with the announcement of the second batch of Auto Ratna award, Ajit Kumar Chordia, President, Federation of Automobile Dealers Association (FADA), said besides slow growth in economy, there were certain factors affecting the automobile business such as high incidence of taxes on vehicles, including sales tax, excise duty, octroi, entry tax, surcharge and turnover tax.

The excise duty of 32 per cent (including special excise levy of 16 per cent) on motor vehicles was still on the high side, though it had been brought down from 40 per cent in the previous budget, Mr. Chordia said. The levy of uniform sales tax had not served any purpose as certain State Governments, including Tamil Nadu, had been levying turnover and multi-point sales tax.

Representations have been made in this regard to respective State governments by the automobile dealers and tyre manufacturers, he said. FADA was also stressing the need for uniform registration charges for all States. FADA would like the registration of vehicles to be delegated to vehicle dealers in Tamil Nadu, a practice already in vogue in some States, including New Delhi.

He said FADA along with Motor Vehicles & Allied Industries Association (MVAIA) would be presenting Auto Ratna award to Mammen Mappillai, Chairman and Managing Director, MRF and to R. J. Shahaney, Chairman, Ashok Leyland. Also a `Life time achievement award' would be presented to M.Ct. Muthiah, Chairman, Reliance Motor Co. at a function to be held in Chennai on October 12.

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