Higher Taxes Impact Auto Sector, Need To Lower GST Rates: Revenue Secretary

"I quite agree with automotive sector. Two-wheelers and four-wheelers were not only charged 28 per cent Goods and Services Tax (GST) but we also charged cess, which is much more and as I see it will continue for two more years," he said.

Higher taxes on automotive sector have a negative impact and the government needs to look at the solution, Revenue Secretary Tarun Bajaj said on Wednesday. "I quite agree with automotive sector. Two-wheelers and four-wheelers were not only charged 28 per cent Goods and Services Tax (GST) but we also charged cess, which is much more and as I see it will continue for two more years," he said while addressing the annual session of Confederation of Indian Industry (CII). "So all that has a negative impact on the industry. I acknowledge that, but I do not know how to solve that issue." However, said Bajaj, transparency has been brought into the indirect tax system and the revenue neutral rate has come down significantly from 15.3 per cent to 11.6 per cent.