AUTOMOTIVE SUPPORT REQUIRED
The proposal of 150 per cent weighted deduction on R&D investments made by the auto companies should be given for a five- to 10-year period. This will help automobile manufacturers plan their investments better.
FICCI
The Customs duty rates for natural rubber should be reduced from 20 per cent to 7.5 per cent. Also, the raw materials for tyre like butyl rubber, polyester tyre cord that currently attract 5 per cent Customs duty and styrene butadiene rubber (tyre grade) that attracts 10 per cent Customs duty should be either exempted from duty or subjected to a lesser rate of duty, as these are not manufactured domestically.
A combination of financial and infrastructure reforms should be aimed by providing relatively inexpensive and readily available credit and higher outlay for road development and modernisation programmes. Prompt and timely execution of such facilities at grassroots level and provision of some significant tax relief should pave the way for revival of the auto sector.
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