Rajiv Bajaj Criticizes High GST on Commuter Bikes, Calls for Rate Reduction

Rajiv Bajaj, MD of Bajaj Auto, advocates for a lower GST rate of 18% on commuter motorcycles, citing overregulation and high taxation.

  • Rajiv Bajaj, MD of Bajaj Auto, advocates for a lower GST rate of 18% on commuter motorcycles, citing overregulation and high taxation.
  • Bajaj emphasizes the disparity in GST rates compared to ASEAN countries, where rates typically range from 8% to 14%.
  • Bajaj’s call for tax reduction coincides with the launch of the powerful Pulsar NS400Z, positioned to compete in the middle-weight motorcycle segment.

Rajiv Bajaj, Managing Director of Bajaj Auto, voices concerns over the high Goods and Services Tax (GST) imposed on commuter motorcycles, urging the government to reconsider the tax rate. During the launch event of the all-new 400cc Pulsar motorcycle, Bajaj criticized the current GST rate of 28%, citing it as a hindrance to the recovery of two-wheeler volumes, especially in the post-COVID-19 era. He highlights the lower GST rates in ASEAN countries, ranging from 8% to 14%, as a benchmark for taxation on similar products.

Bajaj’s advocacy for a reduced GST rate aligns with the company’s unveiling of the powerful and feature-rich Pulsar NS400Z, positioned to compete against leading middle-weight motorcycles in the market. The call for tax reduction underscores the challenges faced by manufacturers in navigating regulatory frameworks and taxation policies, impacting pricing dynamics in the automotive sector. As Bajaj Auto continues to innovate and expand its product portfolio, addressing taxation concerns remains pivotal in ensuring the affordability and accessibility of commuter motorcycles for consumers across the country.