Commercial vehicle major Ashok Leyland said that it hopes the Union Budget 2016-17 can chart out a clear implementation roadmap for Goods and Services Tax (GST), have some specific incentives for the research and development (R&D) initiatives of automobile companies, emphasis to drive investments in infrastructure and funding for public transport development in the recently announced smart cities.
In an press release today, Ashok Leyland Managing Director Vinod K Dasari said that another expectation is that the finance minister will take the first step towards lower corporate tax rates, as well as delayering of taxes, as outlined in the budget speech last year.
"One legislation that the entire industry is eagerly awaiting is the GST. This would be a game-changer for the economy and provide a strong impetus for growth. We hope that the budget speech can chart out a clear implementation roadmap, which will enable companies to re-design internal systems/processes and adapt their supply chain logistics," he said.
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Specific incentives to support R&D initiatives of automotive companies would help the industry's efforts to build safer, greener and more fuel efficient vehicles, he said.
"With the recently announced list of smart cities, we expect the budget will provide funding for public transport development in these cities, with a focus on bus fleet enhancement and modernisation," he added. The Indian industry is looking forward to a systematic and structured pro-growth, pro-development direction from the budget, he said.