2021 Budget: HDFC Securities has also called for a reduction in excise duty on fuels
The Budget session of parliament will begin on January 29 and the Finance Minister Nirmala Sitharaman will present the Union Budget for upcoming financial year 2021-22 on February 1. A Budget in Covid-19 times assumes significance as it will lay out the government s plan to revive the economy, which witnessed its worst quarterly contraction on record in the first quarter of the current financial year. Meanwhile, in order to push for growth in the auto sector, the financial services firm HDFC Securities has recommended that the government should implement a scrappage policy and provide incentives to companies to set up electric vehicles infrastructure.
Budget 2021: Introducing incentives for electric vehicle buyers can boost the demand in auto sector
Budget 2021: The automobile sector has witnessed several challenges due to a reduction in demand and an increase in costs due to regulatory changes amid emission and safety norms. Some of the steps like reduction of the GST tax rates to 18 per cent, introduction of the incentive based vehicle scrappage policy to scrap over 15-year-old commercial vehicles, local sourcing of automobile parts and EV incentives for electric vehicle buyers can trigger a boost in demand for the sector, said Mr. Nilesh Shah, Chairman and MD, Atlas Integrated Finance Limited. The automobile sector suffered a slowdown in terms of demand and the expectations were not met for the sector in last year s budget.