New Delhi, June 28 (KNN) Making the budget recommendations to Finance Minister Nirmala Sitharam ahead of General Budget 2019, the Federation of Automobile Dealers Associations (FADA) has sought Micro Small and Medium Enterprises (MSMEs) status for automobile retail industry.

The association said “Our main request, amongst others, is to be considered under MSME on an immediate basis and consider industry status in the near or mid-term to our sector.”

Supporting the argument, FADA President, Ashish Harsharaj Kale said, today only the auto workshops have been kept out of the MSME category, despite qualifying and following all regulations required as an MSME under all parameters.

The auto retail sector, despite its huge Contributions does not avail of any incentive or support under any category currently, he added.

Talking about the support for the auto industry, Kale said, “The Indian auto industry is going through turbulent times and needs support and a renewed focus as being an important wheel in our nation’s economic progress.

He stated “Current economies with global leadership have always looked at the auto industry as an economy builder and consider it as the barometer of their Country’s economic performance. If the Industry is doing good, the nation’s economy is also doing good. The same holds true for our country and looking at the contribution of the auto sector to the manufacturing GDP and overall GDP, we have requested the Government to consider some bold measures in this budget to help get the industry back to growth trajectory without compromising on the much required safety and emissions standards.”

Besides, FADA demanded that GST rates should be reduced to 5% on margins of all pre-owned vehicles.

It said “GST Rates should be reduced to 5% on margins of all pre-owned vehicles to create a win-win situation for the Government, Auto Dealers and Vehicle Owners.”

Additionally, the association said that the country's automobile sector faced severe stress and requested the government to resolve this by reducing overall GST or the cess charged on automobiles.

Attractive enough incentive for successful implementation of Vehicle Scrappage Policy across the country will have benefits of reducing pollution, reducing fuel consumption, suggested FADA.