Tyre GST Rate Cut: A Boost for Economical Mobility and Road Safety
The Automotive Tyre Manufacturers' Association applauds the GST Council's decision to reduce tyre GST rates from 28% to 18%. This move will make tyres more affordable, reduce vehicle operating costs, and enhance road safety by encouraging timely tyre replacement, thus lowering overall logistics expenses in the economy.
- Country:
- India
The Automotive Tyre Manufacturers' Association (ATMA) has welcomed the recent reduction in GST rates on tyres, viewing it as a pivotal move to decrease vehicle operating costs. The GST Council's decision to lower the rate from 28% to 18% is anticipated to also reduce logistics expenses across the economy.
ATMA Chairman Arun Mammen expressed that the cut will make tyres more accessible to a wide range of users, including farmers, transporters, and motorists, by reducing costs. This affordability is expected to promote timely tyre maintenance and replacements, thereby bolstering road safety.
Tyres, a vital component for a plethora of vehicles, were previously taxed at the same rate as luxury items. The new tax rate is set to relieve consumers and industry stakeholders, promoting safer roads through improved tyre maintenance and decreasing the risk of accidents due to worn tyres.
(With inputs from agencies.)
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