Budget 2019 Expectations: MD of Mercedes Benz India wants downward revision of GST, reduction of cess

With Union Finance Minister Nirmala Sitharaman all set to present Modi 2.0's first Full Budget on July 5, expectations and hopes of various traders, industrialists, and other people from the business section are running high. Keeping in mind the big focus on auto industry that Modi 2.0 has, players in car segment too are sharing their expectations. Now, MD & CEO of Mercedes Benz India has shared what he expects from Modi 2.0's Budget 2019.

Martin Schwenk, MD & CEO, Mercedes-Benz India, said, "We wish the Government would reconsider the rationalization of GST rates for cars which currently attracts 28% GST and 17-22% Compensation Cess."

"We recommend a downward revision of GST rate on all cars to 18% from 28%, and a proportionate reduction of CESS to around 15% for all cars above 4 meters," Schwenk added.

FULL TEXT of the statement by Martin Schwenk, MD & CEO, Mercedes-Benz India:-

“Given the favourable outcome of GST in terms of rising revenue, we wish the Government would reconsider the rationalization of GST rates for cars which currently attracts 28% GST and 17-22% Compensation Cess. We recommend a downward revision of GST rate on all cars to 18% from 28%, and a proportionate reduction of CESS to around 15% for all cars above 4 meters. This will act as a much needed catalyst for growth of the industry, especially when it is facing subdued customer interest due to multiple factors like rise in insurance costs, inflationary hikes, liquidity crunch and forthcoming price increase due to BSVI implementation. To revive the slowing down auto sector, we also recommend to consider offering ‘depreciation’ benefit on vehicles to individuals.”