Auto components industry body ACMA said that they urged the government for the deduction of auto parts in the upcoming budget 2022. The Automotive Component Manufacturers Association (ACMA) also asked the government to consider an upward vision of RoDTEP (Remission of Duties and Taxes on Export Products) rates.
ACMA President Sunjay Kapur said, "The auto component industry, being an intermediary, has recommended for a uniform GST rate of 18 percent on all auto components." "A moderate rate of 18 percent will not only address this challenge but will also enhance the tax base through better compliance," Kapur said. He also said that the government is focusing on environment, energy security, and vehicular safety, so it is imperative for the auto components industry to invest in newer technologies "Facilitating investments for capacity building and encouraging R&D and new product development will step in the right direction by the government," Kapur added.
He also praised, the government's policy announcements on the production linked incentive (PLI) schemes for ACC (advanced chemistry cell) battery, auto, and auto components, and extension of FAME-2 scheme, "will facilitate the Indian automotive sector in becoming integral to global automotive value chains as also staying relevant", he noted.
"The automotive industry is witnessing one of the most challenging, yet interesting times, ever. Disruptions due to the pandemic, new technologies and regulations are redefining mobility," he added.