INSUBCONTINENT EXCLUSIVE:
2021 Budget: HDFC Securities has also called for a reduction in excise duty on fuelsThe Budget session of parliament will begin on January
29 and the Finance Minister Nirmala Sitharaman will present the Union Budget for upcoming financial year 2021-22 on February 1
A Budget in Covid-19 times assumes significance as it will lay out the government's plan to revive the economy, which witnessed its worst
quarterly contraction on record in the first quarter of the current financial year
Meanwhile, in order to push for growth in the auto sector, the financial services firm HDFC Securities has recommended that the government
should implement a scrappage policy and provide incentives to companies to set up electric vehicles infrastructure.In a report titled
Pre-Budget Expectations 2021, HDFC Securities said implementation of scrappage policy could improve sentiment towards commercial vehicle
makers such as Tata Motors, Ashok Leyland, Escorts, Eicher Motors and Mahindra - Mahindra.The Mumbai-based firm has also recommended that
the government should propose a reduction in Goods and Services Tax (GST) on smaller cars to 18 per cent from 28 per cent and also called
for reduction in GST on auto components
Such a decision has to be taken by the GST council, but the Finance Minister could give some indications, HDFC Securities added.At the same
time, HDFC Securities has also called for a reduction in excise duty on fuels and increase in rural spending.Reduction in excise duty on
fuel would reduce the running cost of vehicles and boost demand, and increasing spending on rural infrastructure could positively impact
demand for tractors and other vehicles in rural areas, HDFC Securities said.
