ATMA urges to reduce GST to streamline logistics ops

The Automotive Tyre Manufacturers Association (ATMA) has called for a reduction in Goods and Services Tax (GST) on tyres, arguing that the current rate of 28 per cent, the highest slab, burdens vehicle operators and inflates logistics costs across sectors. ATMA said lowering GST on tyres would directly cut vehicle operating expenses, particularly in the commercial segment and benefit farmers, small traders, service providers, as well as infrastructure and mining industries. At present, all major categories of automotive tyres attract 28 per cent GST, while tractor tyres and aircraft tyres are taxed at 18 per cent and 5 per cent respectively. In a representation to the Union Finance Minister, ATMA stressed that tyres are fundamental enablers of mobility across trucks, buses, passenger cars, two and three-wheelers, tractors and construction and mining equipment and should not be taxed on par with luxury goods.