Tax Reduction On Two-Wheelers: FADA Flags Reduction In Two-Wheelers’ Sales, Urges Govt To Slash GST

Tax Reduction On Two-Wheelers: Two-wheelers are a major means of transport for a lot of middle-class families in India. However, the prices of two-wheelers have gone up with almost all two-wheelers ranging over Rs 1 lakh. Amid the skyrocketing prices of two-wheelers in India, the Federation of Automobile Dealers Associations (FADA) has urged the government to reduce the GST on affordable two-wheelers from 28 per cent to 18 per cent.

GST Tax Reduction

FADA has put forward the issue that sales of affordable two-wheelers haven’t bounced back since the COVID-19 pandemic. Manish Raj Singhania, President of FADA pointed out that sales have only increased by 7 per cent this year, which isn't a strong recovery.

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These affordable two-wheelers comprise the 100cc and 125cc two-wheelers segment. FADA's data indicates that only 65,15,914 of these two-wheelers have been sold from April 2023 to August 2023, which is a 4.49 per cent increase in sales for the same time period last year. FADA also said that vehicle sales across all categories during this period in the current fiscal year reached 91,97,045 units, which meant a 6.75 per cent increase from the same period last year.

After carefully analysing this data, FADA has decided to bring this up with the government in order to help two-wheeler manufacturers and dealers boost their sales while also offering an incentive to the buyers.

What is FADA?

The Federation of Automobile Dealers Associations (FADA) was established in 1964. It is known to be the highest governing body for the automotive retail sector in India. FADA plays a pivotal role in facilitating the sales, servicing, and distribution of various vehicles, including two-wheelers, passenger cars, SUVs, commercial vehicles such as buses and trucks, and even tractors.

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As per the information available on FADA's official website, FADA India serves as the voice of over 15,000 automobile dealers, encompassing a huge network of 26,500 dealerships. Furthermore, FADA collaborates closely with numerous regional, state, and city-level automobile dealer associations, collectively advocating the interests and well-being of the entire automotive retail industry in the country.