Auto industry body, Society of Indian Automobile Manufacturers (Siam) has written to the government requesting for a reduction in the GST on two-wheelers.

It has suggested that the government adopts three range slabs of reducing the rate-from the current 28% to 18% for internal combustion engine powered two wheelers, to 5% from the current 12% for zero carbon tailpipe emission two wheelers such as hydrogen and reduce the GST rate on low carbon emission technologies like flex fuel and CNG from the current 28% to 18% in the first stage bringing it down further to 12% in the second stage, once the overall base rate for two-wheeler is reduced to 18%. Siam is also seeking removal of the additional cess of 3% levied on higher cubic capacity bikes.

India levies a GST rate of 28% (plus 3% cess on models that are above 350cc) on scooters and motorcycles that run on fossil fuel-the highest in the world. It ranges from a tax rate of 7% in Thailand (the lowest) to 16% in Mexico, Siam said.

Source: The Economic Times