R C BhargavaMaruti Suzuki India Chairman R C Bhargava on Thursday called on Indians to stand united against the 50 per cent punitive tariffs imposed by the United States on Indian goods, stressing that the country must not “give in to any kind of bullying.”
Addressing shareholders at the company’s 44th Annual General Meeting (AGM), Bhargava said the move by the US, effective August 27, will hurt exports and job creation in labour-intensive sectors such as shrimp, apparel, diamonds, leather, footwear and gems and jewellery, PTI reports.
“I believe it is our duty as Indians to do our very best to support the government and maintain our dignity and respect and not give in to any kind of bullying in this matter. The nation has to stand united at this point of time,” he told shareholders.
GST buzz
Bhargava also welcomed the government’s proposed restructuring of the Goods and Services Tax (GST), calling it a “major reform” that could boost growth and jobs. He expressed hope that the GST rate on small cars would be reduced to 18 per cent, which he said would help revive demand in the entry-level segment. “It is a matter of happiness that the government has recognised that there are a large number of consumers at the lower end of the market and they need some help in these difficult times,” Bhargava noted.
Currently, automobiles are taxed at the highest GST slab of 28 per cent, with a cess ranging from 1 to 22 per cent, leading to an effective tax incidence of 29 per cent on small petrol cars and up to 50 per cent on SUVs. Electric vehicles are taxed at 5 per cent.
Drawing a parallel with Japan’s post-war mobility transformation, Bhargava suggested that India consider introducing small, low-cost cars with lower taxes, similar to Japan’s Kei cars, as an affordable and safer alternative to two-wheelers.
He also emphasised the need for a technology-neutral tax regime that promotes not just electric vehicles but also hybrids and other cleaner technologies. “There is a need for technologies to be encouraged by the taxation system, not only electric vehicle technology but any technology which leads to cleaner cars, reduction of oil consumption, reduction of pollution in the air and which leads us towards net-zero,” he said.
Bhargava further noted that the rare earth magnet shortage, a key concern for the auto industry, was easing due to government intervention. He added that the free trade agreement with the UK could serve as a model for future global partnerships.
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