How much tax is being paid on a bike worth Rs 80,000, why is there a demand to reduce GST on two-wheelers? Learn

New Delhi. There has been a demand to reduce the tax on two-wheelers in India. Recently, Bajaj Auto MD Rajiv Bajaj has demanded the government to reduce the tax on two-wheelers. He has said that on one hand the country’s emission standards are being increased. On the other hand, a heavy 28 percent tax is imposed on the auto industry. The tax rate on auto industry in ASEAN countries is 8 to 14 percent. At the same time, the auto industry in India has to pay the highest tax. He has demanded the government to reduce the tax on vehicles from 28 percent to 12 or 18 percent.

Rajiv Bajaj said that motorcycles have become an everyday necessity of the people. We have no problem with the government increasing the emission standards. But, tax on bikes should be reduced. If the tax on bikes becomes 12 or 18 percent, it will be very convenient for the auto industry. He has blamed excessive regulations and high tax system for the rising prices of bikes. Bajaj Auto MD said that the two-wheeler industry has still not reached its pre-Covid 19 situation.

How much tax is being paid on the bike?
At present, the government is imposing 28% GST on two-wheelers like bikes and scooters. This tax is on engines of 350cc and less capacity. That means if you buy any bike with engine between 100cc to 350cc, you will have to pay 28% GST on it. Suppose the price of a 100cc bike is Rs 80,000, then you will pay Rs 17,500 as GST on it at the rate of 28% GST. That means the actual price of the bike is Rs 62,500.

Rajiv Bajaj attends the launch event of Pulsar NS400Z
Bajaj Auto has recently launched Pulsar NS400Z. This is the most powerful bike in the Pulsar range which has been launched at a price of Rs 1.84 lakh. MD Rajiv Bajaj also attended the launch event of this bike. Pulsar NS400Z will compete directly with Dominar 400, KTM 390 Duke and Triumph Speed ​​400. Bajaj Auto has sold around 1.8 crore Pulsar bikes so far. This bike, launched in the year 2001, has so far earned Rs 10 thousand crores for the company.

Tag: auto news, bike news