Budget 2020-21: Hero Cycles urges govt to reduce GST from 12% to 5%
New Delhi, Jan 28 (KNN) Hero Cycles has urged the government to reduce Goods and Services Tax (GST) on bicycles from 12 per cent to 5 per cent ahead of the Union Budget.
In a statement, Hero Motors Company (HMC) Chairman Pankaj M Munjal said, "The budget must focus on reviving slumping demand across the country through a series of measures including re-adjusting GST slabs to put more disposable income into the hands of people."
“Bicycles are largely consumed by low-income group and rural populations, so it needs to be made cheaper by slashing GST from the current 12 per cent to the lowest 5 per cent slab,” he added.
To revive growth in the bicycle industry, the segment’s leading manufacturer Hero Cycles has sought the extension of FAME-II benefits to electric bicycles.
The company further said that lower GST on bicycles would provide relief to millions of low income households.
"We hope the government recognises the need to promote electric bicycles as much as the need to promote electric cars. While electric cars address the problem of pollution, they do not address the concern of traffic congestion in Indian cities," Munjal said.
The company feels that the inclusion of electric bicycles in the FAME-II initiative will provide a much-needed boost to the sector.
“We hope the government recognizes the need to promote electric bicycles as much as the need to promote electric cars. Electric bicycles are both eco-friendly and space-friendly and also offer a viable solution to the problems like traffic congestion, lack of charging infrastructure as they can be easily pedaled back in case of battery loss,'' he added.