FADA requested to add vehicle depreciation benefits for taxpayers in the current 2024-25 budget presenting on 23th July by Finance Minister Nirmala Sitaraman.
In a significant move, the Federation of Automobile Dealers Associations (FADA) has called on the government to introduce vehicle depreciation benefits for individual taxpayers. This request is part of their pre-budget wishlist aimed at expanding the taxpayer base and boosting demand for automobiles.
Key Highlights:
- FADA urges the government to introduce vehicle depreciation benefits for individual taxpayers.
- Depreciation benefits could expand the taxpayer base and boost automobile demand.
- FADA also requests reduced corporate tax for LLPs, proprietary, and partnership firms.
- Current corporate tax reduction only applies to private limited companies with turnover up to Rs 400 crore.
- FADA believes these measures are essential for stimulating the automotive industry and the broader economy.
FADA Appeals for Vehicle Depreciation Benefits to Boost Auto Industry
On Friday, the Federation of Automobile Dealers Associations (FADA) urged the government to introduce vehicle depreciation benefits for individual taxpayers. This proposal is part of FADA’s pre-budget wishlist, aimed at not only expanding the taxpayer base but also igniting demand for automobiles across the country.
FADA believes that offering vehicle depreciation benefits to individual taxpayers will provide a much-needed stimulus to the automotive sector. This move could make vehicle ownership more attractive by allowing taxpayers to offset some of the vehicle’s cost against their taxable income. In turn, this could lead to an increase in automobile sales, benefitting manufacturers, dealers, and the overall economy.
Vinkesh Gulati, President of FADA, emphasized the importance of this measure. “Introducing vehicle depreciation benefits for individual taxpayers will significantly boost the automotive industry’s growth and expand the taxpayer base,” he said.
Additionally, FADA has requested the finance ministry to reduce corporate tax for Limited Liability Partnerships (LLPs), proprietary, and partnership firms. Currently, the government has reduced corporate tax to 25 percent for private limited companies with a turnover of up to Rs 400 crore. However, FADA argues that extending this benefit to all LLPs, proprietary, and partnership firms is crucial. Many traders within the auto dealership community fall into these categories and would greatly benefit from such a tax reduction.
“While the government has already reduced corporate tax for private limited companies, it is essential to extend this benefit to LLPs, proprietary, and partnership firms. Most auto dealers operate under these categories, and a tax reduction will support their growth and sustainability,” Gulati noted.
FADA’s pre-budget wishlist highlights the urgency of these measures to stimulate the automotive industry and the broader economy. By implementing these recommendations, the government can provide a significant boost to the sector, ensuring its continued growth and contribution to India’s economic development.
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