The Union Budget 2019 is here, and it has both good and bad news for the present car owners, and those wishing to become one.
The car sales had been going down since the beginning of this year. The automobile industy is reaching new lows in its decade long history in India. It was, therefore, expected that there would be some respite in the Budget 2019 to the car manufacturers and buyers.
But the ball did not entirely land in their court since the government is focused on increasing the number of electric vehicles on the road. Pollution has become a very challenging problem in the country, especially in major cities like Delhi and Bengaluru. With keen attention given to popularizing electric vehicles, here are some of the major highlights of the 'Green' Budget presented by the Finance Minister, Nirmala Sitharaman.
You can get an Income Tax Rebate of ₹ 1.5 lakhs if you take a car loan for buying an electric vehicle.
The GST slab on electric vehicles has been reduced to just 5%, from the earlier 12%. This move comes to ensure competitive prices as compared to the diesel and petrol powered engines.
A hefty ₹ 80,500 crore has been allotted to the development of 1,25,000 km of rural roads in the next 5 years. This is being seen as a good sign since higher connectivity would mean more automobile sales.
The Not-so Good
The diesel and petrol prices have been raised by ₹1 each.
The custom duty for imported premium cars has been raised from 25% to 30%.
Vehicles that come with an imported engine will now be levied a custom duty of 15%, up from 10%.
Coins were designed to have two sides, which is basically how everything else works in the world. The Union Budget of 2019 comes with good and sour tastes for the automobile sector.