Making Automobiles Affordable for the Middle Class

Later on, in the annual budget for fiscal year 2019-2020, the government decided to further expand the FED regime in the automobile sector. [...] In addition to the small range of passenger vehicles available in the range to consumers, this also provides an unfair advantage to one manufacturer with three vehicles in the under 850cc category. [...] POLICY RECOMMENDATION Instead of limiting the recently awarded tax relief for vehicles up to engine capacity of 850cc, the government should expand the scope of this relief for vehicles up till the engine capacity of 1050cc. [...] If the government extend the limit to vehicles with engine size up to 1050cc for reduction of sales tax to 12.5 percent and removal of FED, the vehicles that will become less expensive for the general public are listed in the Table 3. [...] The government, therefore, shall make this amendment in the finance bill to extend the same policy for vehicles with engine capacity up to 1050cc, in light of its vision to promote the automobile sector as well as making vehicles more affordable for the general public, especially the middle class.