'Lower GST On Commuter Motorcycles': Rajiv Bajaj Criticises Government Policies (image/bajajauto.com)0
The managing director of Bajaj Auto Ltd., Rajiv Bajaj, raised concerns over the high taxation burden on commuter motorcycles and called for a more manageable Goods and Services Tax (GST) rate. During the launch event of the all-new 400cc Pulsar motorcycle, Bajaj blamed the price increase in vehicles meant for the common man on overregulation and high GST rates.
“This kind of dramatic change in price owes itself to many things, but most of all to what I have openly called overregulation of the market,” he stated.
He asked the central government to consider lowering the GST rate on commuter motorcycles from the current 28 percent to a more reasonable 18 percent. “Two-wheeler volumes have not yet recovered to pre-COVID-19 levels,” Bajaj mentioned while addressing the media. “Why do we have to pay a GST of 28 percent?” he asked, pointing out that ASEAN countries typically have much lower GST rates, ranging from 8 to 14 percent on similar products.
Seeking a more balanced approach, the Bajaj MD said, “We want regulations at the highest level in terms of emissions, which is fine. But then the government should reconsider the GST at 12–18 percent and not at 28 percent.”
In the past as well, Bajaj has criticised the government’s policies that have led to the increase in vehicle prices, leading to a significant downward spiral in the two-wheeler industry. “This started in September 2018, when insurance costs went up. Several thousands of rupees of insurance costs were imposed on every typical two-wheeler customer,” he said in 2020, as quoted by Mint.
On May 3, the company unveiled the most powerful and feature-rich Pulsar to date, named Pulsar NS400Z, with an introductory price of Rs 1.85 lakh. This model is positioned to compete with other middle-weight offerings in the market.
Bajaj’s flagship model boasts advanced features like ride-by-wire throttle, switchable traction control system, and four ride modes. It also offers full LED lighting, a digital instrument cluster with turn-by-turn navigation display, and Bluetooth connectivity, for all motorcycle enthusiasts.
