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International Road Federation Urges GST Reduction on Helmets for Two-Wheeler Riders From 18% To 0%

Updated: Jun 12, 2024 04:00:08pm
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International Road Federation Urges GST Reduction on Helmets for Two-Wheeler Riders From 18% To 0%

New Delhi, Jun 12 (KNN) The International Road Federation (IRF), a Geneva-based global road safety organisation, has called upon the Goods and Services Tax (GST) Council and the Ministry of Finance to reduce the GST rate on helmets from 18 per cent to zero per cent.

This appeal aims to make helmets more affordable and discourage the use of substandard helmets, thereby reducing fatalities among two-wheeler riders, who are among the most vulnerable group in road accidents.

According to the latest Bosch Report, India accounts for approximately 12 per cent of road accident deaths worldwide, resulting in an economic loss of USD 15.71 to 38.81 billion to the Indian economy.

Two-wheeler riders constitute nearly 31.4 per cent of road accidental deaths, primarily due to head injuries.

"The helmet usage in our country has been found to be low," stated Mr. K.K. Kapila, President Emeritus of the IRF. "Most two-wheeler riders belong to economically weaker and lower-income groups and prefer to purchase cheaper and inferior-quality helmets, which are often incapable of saving lives in the event of an accident."

Currently, the applicable GST rate on helmets is 18 percent, despite being a life-saving device.

The IRF strongly recommends abolishing the GST on helmets to make standard helmets more affordable for the masses and discourage the purchase of substandard helmets.

"Reduction of GST on helmets will not only assist in reducing road accident fatalities of two-wheeler riders but will also help in reducing the substantial GDP loss due to road accidents in our economy," Mr. Kapila emphasised.

According to Section 129 of the Central Motor Vehicle Act, 1988, wearing helmets is mandatory for two-wheeler riders.

The Ministry of Road Transport and Highways, in consultation with the Bureau of Indian Standards, has issued a notification making the use of helmets compliant with relevant BIS Standards compulsory.

The IRF has also stressed the need to embed road safety features during the planning and designing stages of roads and ensure their implementation by road infrastructure companies to create safer and better roads in the country.

(KNN Bureau)

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