One urgent Bill that could arise in the winter session of the Parliament could be on tax reforms if the government agrees to the Opposition Party’s call on reviewing the 2022 tax revision. This follows the steep rise in the cost of vehicles that many found out after the moratorium on the import of vehicles was lifted. Sales tax on import of vehicles increased from 10 to 30 percent after the revision in 2022.
The government, as claimed, had no hand in the revision, nor is it blaming the former government, but if the people are feeling the burden, it does make sense to relook into the policy. A lot of restrictions were put in place during the tenure of the former government as it was sailing through a pandemic that derailed the economy and affected livelihood. Some of the impacts and the policy decision are felt even now, long after the pandemic is gone.
A lot of measures to curb the outflow of forex, a ballooning trade deficit and soaring food prices were initiated. The pandemic is gone, the economy is in the recovery mode and there are plans and resources earmarked to reactivate the slow economy. Economic activities can be spurred when restrictions are lifted.
There are expectations to the extent that the economy is projected to grow by 13 percent annually. Lifting the ban on import of vehicles alone will not help the economy. As feared, will only lead to outflow of forex including the scarce Indian Rupee.
Many are convinced that vehicles are getting dearer because of the m.