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Budget 2021 update: Top technical update related to budget

Budget 2021 update: from new vehicle scrap policy to expensive auto and mobile parts, know the special things related to the budget

 

Finance minister nirmala sitharaman has presented the budget for the financial year 2021-22. In his budget address, the Finance Minister announced a 2.5 percent custom duty on mobile devices. This will make mobile and charger expensive. Electronic equipment will also be expensive. It has also been announced to increase the custom duty on auto parts to 15 percent.

What will happen with scrap policy?

Road Transport and Highways Minister Nitin Gadkari has said about this scrap policy that it will be put up for cabinet approval soon. The government hopes that recycling of metals such as steel, copper and aluminum from scrap vehicles will help reduce their imports. By the way, whatever demand was there from the auto sector has once again been dug up like last year, because neither a specific decision was given about electric vehicles, nor there was any news about GST and EV incentives.

When will the vehicle scrap policy be launched

According to the Ministry of Road Transport and Highways, the policy is likely to be implemented from 1 April 2021. According to the government, the vehicle scrap policy will not only reduce environmental pollution and boost auto sales, but can also make vehicles cheaper for consumers as the metal manufacturers from old vehicles will be able to use them again.

Auto parts, mobile, electronics become expensive

Finance Minister Nirmala Sitharaman announced a 2.5 percent custom duty on mobile devices in her budget address. After this, mobile and charger will be expensive. Electronic equipment will also become expensive. It has also been announced to increase the custom duty on auto parts to 15 percent.

How much will be GST

To boost demand in the auto sector, companies are demanding a reduction in GST rates. The auto industry wants a reduction in GST. At the same time, the reduction in GST will see a decrease in the prices of vehicles, due to which people can get interested in buying vehicles.

Scheme on Electric Vehicles (EV)

The government has targeted to take the sale of electric vehicles to 30 percent by 2030. To meet this goal, a comprehensive plan needs to be made along with adopting a model in manufacturing, research and development. A separate fund is expected to be set up for the establishment of charging stations and infrastructure in the Union Budget 2021-22.

Vehicle scrap policy

The policy that the auto sector was waiting for arrived. Private vehicles will not be able to hit the roads after 20 years and commercial vehicles after 15 years. Big positive for the auto sector. The auto sector may see major changes due to the vehicle scrap policy. This policy will be applicable on vehicles which are more than 15 years old. With the introduction of this policy, India can become a major center of the automobile sector and the prices of vehicles will also fall.

Automobile exports fell 18.87 percent in 2020

If we look at the data released by the Society of Indian Automobile Manufacturers (SIAM), India’s automobile exports fell by 18.87 percent in 2020. The total exports of vehicles during January-December 2020 stood at 38,65,138 units as against 47,63,960 units in 2019.

Auto industry hopes raised

The economy of the country affected by the Corona epidemic is expected to get a big booster from this budget. The auto industry suffered the most during the lockdown due to Corona. Production in factories was shut down during the lockdown. Now the auto industry budget 2021, which is slowly recovering from the crisis, has raised many expectations.

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