'Over-regulation of the market': Rajiv Bajaj says taxes are too high on 2-wheelers as prices rise

economictimes.indiatimes.com:

«This kind of a dramatic change in price owes itself to many things, but most of all, over-regulation of the market,» Bajaj said while responding to reporters at the launch of the Pulsar NS400Z.

He clarified that he did think that norms like BS-VI were good for the society. But at the same time, opined that the government should consider reducing the GST rates charged on these vehicles.

«Why is it that in India, on vehicles of the common man, why do we have to pay a GST rate of 28%?,» Bajaj asked. He referred to the fact that the ASEAN countries, some in Latin America, a typical equivalent of GST is equal to 8-14%.

«On one hand we want regulations at the highest level, say for example emissions. As a manufacturer, a father and a member of the society, I am very happy about cleaner air,» Bajaj said.

«But at the same time, the government should reconsider that GST rate should be 12-18%, and not 28%,» he added.

Industry players have sought for a GST reduction on entry-level two-wheelers to 18 per cent for quite some time now. In this regard, automobile dealers' body FADA had sent a letter to the Road Ministry in 2023, asking for a GST rate cut, predominantly within the 100-125cc segment.

The growth of the 2-wheeler segment in India was affected by a change in norms as prices increased, in addition to the Covid-19 pandemic.