Finance Minister Nirmala Sitharaman is going to present the Union Budget for the financial year 2021-22 on Monday, February 1. The economy of the country affected by the Corona epidemic is expected to get a big booster from this budget. The auto industry suffered the most during the lockdown caused by Corona. Production in factories was shut down during the lockdown. Now the auto industry budget 2021, which is slowly recovering from the crisis, seems to have many expectations. Let us tell you what decisions the auto sector expects from the general budget.
Electric Vehicles (EV)
The government has targeted to take the sale of electric vehicles to 30 percent by 2030. To accomplish this goal, a comprehensive plan needs to be adopted along with adopting a model in manufacturing, research and development. It is now expected that funds can be created for the establishment of charging stations and infrastructure in the Union Budget 2021-22.
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Vehicle scrap policy
The auto scrap policy could see a major change in the auto sector. This policy will be applicable on vehicles which are more than 15 years old. With the introduction of this policy, India can become a major center of the automobile sector and the prices of vehicles will also fall.
To boost demand in the auto sector, companies are demanding a reduction in GST rates. The auto industry wants a reduction in GST. At the same time, the reduction in GST will see a decrease in the prices of vehicles, due to which people may be interested to buy vehicles.
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Input tax credit
Input tax credit is availed to those who purchase vehicles for business purposes. At present, there is no benefit of input tax credit on it. If the tax credit facility is announced in the budget then the demand in the auto sector will increase. At the same time, this decision will increase both sales and income and there will be no loss in the revenue of the government as well.