Demonetisation has been a hot topic in the used car industry. The Budget for the financial year 2017 is yet to be announced however, auto traders outraged by the laws under the GST regime have been demanding simplification and reduction of taxes on used cars.
Our COO, Mehul Agrawal, was quoted in the Deccan Herald, News18, and Zee Business about his views on the same. According to him, the used car industry has been witnessing growth in double digit figures each month. On the other hand, the new car industry has been plagued by multiple issues such as the ban on high capacity diesel engines in NCR along with increased tax rates.
Mehul states that the used car industry stands undisturbed by the demand for new cars, however, if the government provides a much-required stimulus, it would contribute to the inclusive growth of the whole automotive industry.
The taxes on used cars should be lower as the government already collects them on the first point of sale.
He also says that if there is a simplification in the used car taxation and policy across states, it would help in the reduction of prices, demand of fuel, and would also drive better tax compliance.
The government should also increase inter-city car movement. It would help in boosting the economy by decongesting the bigger cities and fulfilling the shortage in smaller towns.