Tax cut likely to drive car sales

A Welcome Move

- SWARAJ BAGGONKAR & NITIN KUMAR

THE POSSIBILITY OF a fairly sharp cut in the GST (Goods and Service Tax) on automobiles, especially smaller vehicles, has cheered manufacturers who say the lower prices will bring relief to consumers. The Centre is believed to be in favour of an 18% levy on small cars and affordable two-wheelers down from the current 28%. Small cars have seen relatively tepid demand with consumers opting for larger vehicles such as SUVs. The proposed GST rejig is expected to be rolled out ahead of Diwali.