there is a need to give strong stimulus through continued and aggressive demand creation policy interventions export incentives policy reworking on gst tax rates cutting custom duties on certain parts and boost rd through tax holidays for rd investments new delhi with falling gdp estimates and a slowing economy the fiscal budget 2020 is strife with speculations and huge expectations from the honble finance minister for actions to boost the indian economy auto one of the most organised sector is expecting corrective steps to boost demand and largely the union budget announcements will determine how it pans out in fy2021 advt in the backdrop the corporate sector is struggling on credit crunch and dwindling demand and confidence has hit the lowest ebb there is a need to give strong stimulus through continued and aggressive demand creation policy interventions export incentives policy reworking on gst tax rates cutting custom duties on certain parts and boost rd through tax holidays for rd investmentshere is the wishlist of the auto sector what are the basic expectations from union budget 2020 to be announced on february 1 2020 increased cost of bsvi may affect demand hence we have also requested the government to reduce gst rates for bsvi vehicles effective 1st april from 28 percent to 18 percent said rajan wadhera president siam 1 reduction in goods service tax gst rates topping the expectation list is the reduction in gst rates from 28 to 18 on vehicles auto inc says owning a vehicle is no more luxury or sin in fact personal mobility is needed for every household moreover reduction in the gst rate will boost the sentiment among vehicle buyers also help to offset the extra cost burden on bsvi vehicles increased cost of bsvi may affect demand hence we have also requested the government to reduce gst rates for bsvi vehicles effective 1st april from 28 to 18rajan wadhera president of the society of indian automobile manufacturers siamapart from reducing the gst on vehicles the auto inc is also requesting the government to reduce gst on auto parts from 28 to 18 to meet the government of indias vision of a usd 5 trillion economy by 2025 of which the manufacturing industry would be usd 1 trillion it is critical that steps be taken to get the automotive industry back on trac said deepak jain preseident acma 2 incentivising rd spend to encourage domestic rd and testing it is important to provide exemption on import duty on auto component prototypes also retaining of a weighted tax deduction on rd expenditure is critical advt the 201617 budget reduced weighted deduction benefit from 200 per cent to 150 per cent and has further restricted the deduction to 100 per cent from 1st april 2020 we are hopeful that the government would consider our longstanding recommendation of 18 per cent gst on all auto components as also extend impetus to rd and indigenous technology developmentdeepak jain president acma to meet the government of indias vision