ACMA hails FM’s announcements

Tribune News Service

Ludhiana, August 24

The Automotive Component Manufacturers’ Association of India has welcomed the measures announced today by the Finance Minister to infuse liquidity, enhance transparency, fast track GST refunds for MSMEs, expedite capital availability for infrastructure projects and sustaining automotive demand, among others.

The body expressed satisfaction that the government has taken note of the precarious situation in the auto and auto component industry and has taken appropriate measures to address it accordingly.

Thanking Union Finance Minister Nirmala Sitharaman, president ACMA Ram Venkataramani said: “The announcements made by the Finance Minister are indeed very assuring and welcome. We do hope that measures to improve liquidity and deferring of enhanced vehicle registration cost will revive the ailing sales in the auto sector. That apart, enhanced depreciation of 30 per cent until March 2020 will motivate the institutional sales of vehicles. Further, the removal of ban on purchase of new vehicles by government will also help reduce the current pileup of inventory”

“It is also heartening to note that the government will be announcing a scrappage policy in due course. This will not only create replacement demand, but will also have a benign impact on the environment and reduce import of fossil fuel. Newer vehicles will be endowed with better technology,” Ram said. He said: “We do hope that the Central Government in consultation with the sates will consider ensuring a uniform GST rate of 18 per cent on all auto components. Currently 60 per cent of auto components are at 18 per cent, while the rest are at 28 per cent. A lower rate of GST will not only ensure better compliance, but also help in curbing gray operations in the aftermarket.”