clerl.tax

Author: admin

  • Adani Group’s $2.5 Billion Defence Takeover—Revolutionizing India’s Military Tech

    In a decisive move to expand its technological prowess, Adani Group has earmarked an impressive $2-2.5 billion for strategic acquisitions within the defence sector over the next two to three years. This ambitious initiative underscores the group’s commitment to enhancing capabilities in unmanned systems, small arms, missile technology, and indigenous artillery.

    The group has strategically identified promising drone technology enterprises in Bengaluru and Hyderabad as prime acquisition targets, aiming to leverage their advanced reconnaissance capabilities in hostile environments. These acquisitions are poised to bolster Adani’s defence portfolio, with negotiations reportedly progressing swiftly towards imminent deals.

    In a significant development earlier this month, Adani Defence & Aerospace entered into a collaborative agreement with the UAE-based EDGE group. This partnership will encompass a wide range of defence and security products, including advanced missile systems, unmanned aerial vehicles, counter-drone technologies, and electronic warfare solutions.

    Ashish Rajvanshi, CEO of Adani Defence, reiterated at a recent defence summit the company’s substantial investment plans for the next decade, reflecting their strategic vision for sustained growth in this critical sector. This vision materialized in February with the launch of a ₹3,000-crore ammunition factory in Kanpur, sprawling over 500 acres. Touted as South Asia’s largest ammunition and missile complex, this facility will produce a diverse range of calibres for defence forces, signifying a major leap in domestic manufacturing capabilities.

    Furthermore, Adani’s investment blueprint includes a ₹1,000 crore allocation in Telangana to establish state-of-the-art counter-drone and missile production facilities. Last year, the group unveiled the Drishti 10, an indigenously developed intelligence, surveillance, and reconnaissance platform, alongside the inauguration of a serial missile production line in Hyderabad. These milestones underscore Adani’s relentless pursuit of cutting-edge defence technologies.

    Collaboration with the Defence Research and Development Organisation (DRDO) further exemplifies Adani’s dedication to innovation, with joint projects such as naval anti-ship missiles in the pipeline. The group’s strategic alliances extend globally, encompassing partnerships with leading defence technology firms across the Middle East, Eastern Europe, Africa, and Southeast Asia. These collaborations are poised to infuse advanced technological solutions into India’s defence sector.

    Adani Group’s forward-looking strategy places a pronounced emphasis on unmanned systems, advanced small arms, and missile technology. The group’s commitment to indigenous artillery production and the establishment of comprehensive maintenance, repair, and overhaul solutions within India is set to redefine the nation’s defence landscape. This strategic investment not only positions Adani Group as a formidable player in the global defence arena but also underscores its pivotal role in fortifying national security infrastructure.

  • Diesel Demand Plummets Amidst Extreme Heat, Sales Decline by 4% in June

    NEW DELHI: The sweltering heatwave sweeping across India has precipitated a notable decline in diesel demand, with sales plummeting by 4% in June, according to preliminary data from state-owned enterprises released on Monday.

    Traditionally, fuel sales experience a surge during election periods; however, this year has defied historical trends, witnessing a consistent month-on-month decline even post the general elections. The three major state-owned firms, which dominate 90% of the fuel market, reported petrol sales of 1.42 million tonnes in the first half of June, a marginal increase from the 1.41 million tonnes recorded in the same period last year.

    Diesel consumption, a critical indicator of economic activity, saw a 3.9% drop to 3.95 million tonnes from June 1 to 15 compared to the same period last year. This follows a pattern of declining demand, with diesel consumption falling by 2.3% in April and 2.7% in March, and a further 1.1% drop in May.

    Despite expectations that the summer harvest season and the increased use of air conditioning due to the extreme heat would boost fuel consumption, this year has bucked the trend. The reduction in petrol and diesel prices by Rs 2 per litre in mid-March, which ended a nearly two-year-long hiatus in rate revisions, was anticipated to spur sales but has not had the expected impact.

    Month-on-month, petrol sales fell by 3.6% compared to the 1.47 million tonnes consumed during May 1-15, while diesel demand remained flat against the 3.54 million tonnes recorded in the first half of May. Diesel, which accounts for nearly 40% of all petroleum product consumption in India, is predominantly used in the transport sector, which accounts for 70% of diesel sales, and in agriculture, particularly in harvesters and tractors.

    The data reveals that petrol consumption from June 1-15 was 4.6% lower than the same period in 2022, yet 28.1% higher than the Covid-impacted period of 2020. Diesel demand saw a significant 10.5% drop compared to June 1-15, 2022, but was 14% higher than the same period in 2020.

    Jet fuel (ATF) sales, however, showed a year-on-year increase of 2.3% to 331,000 tonnes during June 1-15, 2024, although this was a 4.5% decrease month-on-month from the 346,500 tonnes recorded in the first half of May. Notably, ATF demand has surpassed pre-Covid levels, with consumption 10.1% higher than June 1-15, 2022, and 6.1% more than the same period in 2020.

    Cooking gas (LPG) sales experienced a slight year-on-year increase of 0.1% to 1.24 million tonnes in the first half of June 2024. However, LPG consumption dropped by 0.9% compared to the same period in 2022, though it was 32% higher than in June 2020. Month-on-month, LPG demand fell by 5.2% against the 1.3 million tonnes consumed during May 1-15.

    In summary, the extreme heat has significantly impacted fuel consumption patterns in India, with diesel and petrol sales experiencing notable declines, while ATF and LPG have shown resilience and growth in certain metrics. The data underscores the complex interplay between environmental conditions and fuel demand, challenging traditional consumption trends.

  • India Slips in Global Gender Gap Rankings; Iceland Maintains Top Position— WEF

    The latest Global Gender Gap index from the World Economic Forum (WEF) reveals a mixed picture for India. Despite a steady rise in its economic parity score over the past four years, India has dropped two places to 129th position, while Iceland continues to dominate the rankings, as reported on June 12.

    In the South Asian context, India’s standing is concerning, as it trails behind Bangladesh, Nepal, Sri Lanka, and Bhutan, securing the fifth position in the region. Pakistan, notably, ranks at the bottom in South Asia and second-last globally, just above Sudan, which anchors the index at 146th place.

    India’s performance on economic parity remains troubling, as it is listed among the nations with the lowest levels of gender parity in estimated earned income, alongside Bangladesh, Sudan, Iran, Pakistan, and Morocco. These countries have not surpassed the 30% threshold in gender parity for earned income.

    Conversely, India shows significant progress in specific areas. It boasts the highest gender parity in secondary education enrolment within the region and ranks 65th globally for political empowerment of women. Particularly noteworthy is India’s 10th position in the parity of years with female and male heads of state over the past five decades.

    India, with its population exceeding 1.4 billion, has closed 64.1% of its gender gap in 2024. The slight decline from last year’s 127th rank is attributed to marginal decreases in ‘Educational Attainment’ and ‘Political Empowerment,’ even as ‘Economic Participation’ and ‘Opportunity’ scores saw modest improvements. The upward trend in India’s economic parity score over the past four years is a positive indicator.

    However, there is room for improvement in political representation. Despite scoring within the top 10 on the head-of-state indicator in the Political Empowerment subindex, women’s representation at the federal level remains limited, with only 6.9% in ministerial positions and 17.2% in parliament.

    On a global scale, the WEF reports that 68.5% of the gender gap has been closed, yet at the current rate, full gender parity remains 134 years away—equivalent to five generations. The past year saw a mere 0.1 percentage point improvement in the global gender gap.

    WEF Managing Director Saadia Zahidi stresses the urgency of the situation: “Despite some bright spots, the slow and incremental gains highlighted in this year’s Global Gender Gap Report underscore the urgent need for a renewed global commitment to achieving gender parity, particularly in economic and political spheres. We cannot wait until 2158 for parity. The time for decisive action is now.”

    The top five countries in the gender gap index are Iceland, Finland, Norway, New Zealand, and Sweden. The United Kingdom holds the 14th position, while the United States ranks 43rd.

  • India’s Economic Renaissance— Unveiling the 2024-25 Growth Prospects

    In the latest monetary policy assessment, the Reserve Bank of India (RBI) has revised its GDP growth forecast for the fiscal year 2024-25 upwards to 7.2%, from an earlier estimate of 7%. Concurrently, retail inflation is expected to decline to 4.5%, down from an average of 5.4% last year. This adjustment underscores a cautiously optimistic outlook for India’s economic landscape amidst global uncertainties.

    Recent Economic Performance and Indicators

    The National Statistical Office (NSO) has reported that India’s GDP surged by 8.2% in 2023-24, surpassing all prior economic predictions. This robust performance eclipsed the NSO’s own earlier estimates, which had projected a 7.6% growth. The data reveals a nuanced picture: while the third quarter saw an 8.4% rise, the final quarter recorded a slightly slower, yet substantial, 7.8% growth. Despite tepid private consumption—critical for industrial investment revival—the latter half of the year showed marginal improvement over the first half.

    Projections for the Coming Year

    The RBI’s recent review indicates a tempered start to the year, with April’s industrial output growth dipping to a three-month low of 5%. Yet, April’s Goods and Services Tax (GST) collections hit a record high, exceeding ₹2 lakh crore, driven by end-of-year compliance. May’s collections remained strong, though the growth rate decelerated to under 10%, the lowest since July 2021, partly attributed to the adverse effects of heatwaves. An anticipated above-normal monsoon could bolster agricultural output and rejuvenate the rural economy. Estimates vary slightly, with the Bank of Baroda’s chief economist, Madan Sabnavis, predicting a 7.3%-7.4% GDP growth, while CRISIL’s forecast stands at 6.8%.

    Impact of Political Dynamics on Economic Policies

    Following the recent electoral outcomes, Prime Minister Narendra Modi’s return as the leader of a coalition government heralds a period of policy continuity. Key ministers, such as Nirmala Sitharaman in Finance and Piyush Goyal in Commerce and Industry, retain their portfolios, ensuring stability in economic governance. Fitch Ratings’ director, Jeremy Zook, notes that while medium-term growth prospects remain strong, propelled by government capital expenditure and healthier corporate and bank balance sheets, the coalition dynamics may complicate the advancement of contentious reforms, especially in land and labor sectors.

    Challenges and Opportunities

    The efficacy of coalition governments in driving economic reforms remains a point of contention. Fitch suggests that reliance on coalition partners may hinder swift policy implementation, particularly around fiscally sensitive and socially impactful reforms. Conversely, Moody’s Ratings express concerns about the fiscal management prospects given the coalition’s narrow victory margin and the BJP’s loss of an outright parliamentary majority. Structural issues, such as high youth unemployment and sluggish productivity in the agricultural sector, which employs 40% of the workforce, along with declining foreign direct investment (FDI) inflows over the past three years, present significant challenges.

    Anticipations from the Upcoming Union Budget

    Finance Minister Nirmala Sitharaman’s upcoming Budget is poised to continue the reform trajectory set since 2014, focusing on enhancing macroeconomic stability and growth. Initial consultations with industry stakeholders aim to address pressing policy issues, such as controlling inflation, boosting consumption and investments, and resolving complex taxation matters. The GST Council’s forthcoming meeting may herald reforms in the indirect tax regime, reflecting on its seven-year journey.

    Furthermore, the Budget is expected to integrate elements from the ministries’ 100-day agendas and provide clarity on initiatives announced in the interim Budget. Sitharaman’s emphasis on integrating Indian manufacturing into global value chains may prompt measures to reduce high import tariffs, fostering a more competitive industrial landscape. Additionally, with coalition partners like the Telugu Desam Party (TDP) and Janata Dal (United) advocating for regional priorities, the Budget will likely delineate the government’s broader developmental blueprint, aligning with Niti Aayog’s vision for India to emerge as a developed nation by 2047.

    Historically, coalition governments in India have successfully driven significant reforms, exemplified by the privatization initiatives under the Atal Bihari Vajpayee administration. The forthcoming Budget will reveal whether the current coalition can adopt a more collaborative and effective approach to advance India’s economic reform agenda.

  • GST Council Poised to Alleviate Burdens of Inverted Duty Structure on Key Sectors

    The GST Council is poised to address the significant challenges posed by the Inverted Duty Structure (IDS) which has profoundly impacted sectors such as textiles, fertilizers, and leather. This intricate issue, characterized by higher duties on inputs compared to outputs, has led to the problematic accumulation of input tax credits (ITC), creating substantial cash flow burdens for businesses unable to effectively utilize these credits.

    The IDS dilemma is currently under the scrutiny of a Group of Ministers (GoM), led by Uttar Pradesh’s Finance Minister, Suresh Kumar Khanna, who is spearheading efforts towards rate rationalization. While the group’s final recommendations are awaited, an interim report released in June 2022 highlighted the adverse effects of IDS on industries. The report elucidated that the non-refund of accumulated ITC on services and capital goods exacerbates supply chain costs, rendering Indian manufacturers and suppliers less competitive both domestically and internationally.

    The GoM’s interim findings underscore the critical need for rectifying the IDS to prevent tax evasion and enhance the global competitiveness of Indian goods. By addressing the ITC blockage, domestic manufacturers would not only benefit from the utilization of tax credits on inputs, but the overall burden on consumers would also be alleviated. The Committee’s interim measures have not yet fully addressed sectors like utensils, tractors, and agricultural implements, but clarity is anticipated, particularly concerning refunds.

    Industry experts have weighed in with potential solutions. Harpreet Singh, Partner at Deloitte India, notes that the Council has historically attempted to mitigate IDS by increasing GST rates on outward supplies, a strategy that has met with mixed reactions from the industry. Singh suggests that any rectification of IDS should consider the broader impact on taxpayers and consumers, aiming for a balanced approach that supports both.

    Ankur Gupta, Practice Leader (Indirect Tax) at SW India, proposes lowering GST rates on inputs to align them with those on finished products, thereby reducing ITC accumulation and facilitating a smoother credit flow within the supply chain. Gupta also recommends rationalizing tax rates on raw materials, intermediates, and finished goods to establish a more balanced tax structure. He advocates for sector-specific relief, particularly for heavily impacted sectors like textiles, footwear, and fertilizers, to ensure targeted and effective mitigation of IDS impacts.

    In conclusion, the GST Council’s deliberations on IDS relief are crucial for alleviating the financial strains on affected industries, enhancing the competitiveness of Indian manufacturers, and ultimately benefiting consumers. The proposed measures, if implemented thoughtfully, could streamline the tax credit system, reduce costs, and foster a more equitable tax environment.

  • Strategic Insights from CII President Sanjiv Puri—A Roadmap for India’s Economic Future

    In a compelling discourse, Sanjiv Puri, President of the Confederation of Indian Industry (CII), underscores the imperatives for the upcoming budget to bolster rural capital expenditure and invigorate consumption amidst prevailing economic challenges. Addressing Businessline, Puri emphasized the critical need for the Modi 3.0 Government to prioritize public infrastructure investments, with a substantial focus on rural development, to stimulate sustained economic growth.

    Puri advocates for a strategic allocation of the ₹2.1 lakh crore dividend from the Reserve Bank of India towards rural infrastructure projects, including housing, agricultural infrastructure, and digital connectivity. He articulates a vision of a vibrant rural economy, underscoring the transformative potential of targeted investments in these areas to foster a sustainable growth trajectory. “The potential for rural spending is immense,” Puri remarked, “Investments in housing, warehousing, and digital infrastructure can catalyze a thriving rural ecosystem.”

    Highlighting the aspirational nature of India’s youth, Puri called for comprehensive budgetary measures to create a sustainable income framework. He stressed that the forthcoming budget should reflect a decisive shift towards rural and consumption-centric policies, addressing the distress that has been palpably evident in recent state election outcomes.

    Puri’s insights also encompass a call for a 25% increase in capital expenditure allocation, significantly higher than the previous year’s increment. He advocates for extending schemes like PMSVANIDHI to rural areas and formulating new initiatives akin to MNREGA for urban poor, thereby ensuring inclusive growth.

    Addressing fiscal policy, Puri insists on adherence to the fiscal consolidation roadmap, targeting a 5.1% fiscal deficit by March 2025. Despite the allure of populism, he asserts the necessity of maintaining a development-focused budgetary stance, reflecting the success of past policies in driving GDP growth.

    On the matter of banking sector reforms, Puri reiterated the urgency of implementing the long-pending privatization of Public Sector Banks (PSBs). He highlighted the crucial role of large banks in financing India’s growth and pointed out the Centre’s missed disinvestment targets as an area ripe for immediate action.

    Furthermore, Puri advocates for a rationalized GST structure, proposing a transition to a three-rate system to drive consumption and moderate inflation. He calls for a streamlined import duty regime to incentivize domestic value addition and a robust anti-dumping framework to safeguard Indian industries from unfair competition.

    Concluding with a nod to macroeconomic stability, Puri expressed optimism for a potential RBI rate cut, contingent on favorable monsoon outcomes and manageable food inflation. He also stressed the indispensability of social welfare priorities in the government’s growth agenda, advocating for strategic investments in public capital expenditure, human capital development, and climate adaptation.

    Puri’s comprehensive vision, articulated with the precision and foresight of a seasoned industry leader, provides a nuanced roadmap for navigating the economic landscape, balancing growth imperatives with social equity. His call for a robust, inclusive, and forward-looking budget underscores the strategic priorities essential for India’s sustained economic resurgence.

  • India’s Booming Demand— A Lifeline for Global Steel Amidst China’s Market Slump

    Steel prices continue to experience downward pressure, driven primarily by waning demand in China, a situation anticipated to persist. Analysts highlight that this trend has been ongoing since the start of the year, and recent figures underscore the extent of the decline.

    As of October, steel hot-rolled coil (HRC) futures have plummeted to $519.50 per tonne on the Shanghai Futures Exchange (ShFE), while September’s steel rebar futures closed at $501.24 per tonne. This notable drop aligns with the revised forecasts from research agency BMI, part of Fitch Solutions, which adjusted the 2024 global average steel price projection to $700 per tonne from an earlier estimate of $740 per tonne, citing significant weakness in Chinese demand.

    The World Bank’s Commodity Outlook further supports this perspective, projecting a 9 percent decrease in steel prices for 2024, followed by an additional 5 percent drop in 2025. This forecast is reinforced by data from Trading Economics, which indicates a dramatic 34 percent annual decline in home sales by China’s top 100 real estate firms in May, following a 45 percent fall in April. Such figures highlight the persistent struggles within the Chinese property market.

    The steel demand outlook remains bleak, with excessive housing inventories casting doubt on the effectiveness of the Chinese government’s house-buying programs. The World Bank predicts continued subdued demand through 2024, exacerbated by a 20 percent year-on-year decline in new home starts in 2023 and a cautious approach to monetary easing in advanced economies, which will likely sustain elevated real interest rates and suppress industrial growth.

    Conversely, the Australian Office of the Chief Economist (AOCE) presents a more optimistic view, suggesting a stabilization and gradual increase in global industrial output. The AOCE forecasts nearly 2 percent annual growth in steel production for 2024 and 2025, driven by stimulus-related infrastructure projects. BMI also anticipates a modest 1.2 percent year-on-year increase in steel production for 2024, although it warns of persistent downside risks due to the deteriorating global economic outlook.

    Projections for global steel production indicate a potential rise to 2.1 billion tonnes by 2029, buoyed by new capacity developments in Asia, North America, Europe, and the Middle East. However, the World Bank cautions that anticipated increases in iron ore production in Australia and Brazil could exert additional downward pressure on steel prices, despite the forecasted recovery in steel output by 2025.

    Demand dynamics remain challenging, with a subdued global economic outlook and sluggish manufacturing sector growth in key markets. Nevertheless, the AOCE projects a 1.4 percent year-on-year increase in global steel consumption for 2024, albeit with continued weakness in China’s property sector.

    Amid these global challenges, India’s burgeoning steel demand stands out as a beacon of optimism. Both BMI and the AOCE acknowledge India’s robust economic outlook, underpinned by substantial growth in the manufacturing and construction sectors. Indian government data from late 2023 reveal over 1,700 infrastructure projects, with an estimated completion cost of around $360 billion, poised to drive steel demand significantly.

    India is on track to achieve some of the most vigorous growth in steel output globally, with plans to double steel production capacity to 300 million tonnes by 2030. This trajectory positions India as a pivotal player in the global steel market, potentially offsetting some of the demand weaknesses observed in other major economies.

  • India Engages with EU on CBAM Levy Mitigation Strategies

    As India and the European Union (EU) prepare for their eighth round of Free Trade Agreement (FTA) negotiations in Brussels from June 24 to 28, discussions on the Carbon Border Adjustment Mechanism (CBAM) have taken center stage. The CBAM, a regulatory measure by the EU, seeks to impose a ‘fair’ price on carbon emissions associated with the production of carbon-intensive goods from non-EU countries, commencing January 1, 2026.

    In anticipation of these levies, India is actively engaging with the EU to devise mechanisms that would comply with CBAM requirements. An Indian official underscored the importance of these talks, stating, “We are collaborating with the EU to establish robust mechanisms under CBAM. India has introduced a carbon trading platform; thus, we must determine the appropriate methods for carbon pricing. Additionally, we are examining other measures to reduce carbon content, accreditation issues for carbon verifiers, and potential exemptions or benefits for Micro, Small, and Medium Enterprises (MSMEs).”

    The CBAM issue was a focal point during a recent virtual meeting between senior Indian and EU officials on May 7, where challenges related to CBAM were thoroughly discussed. The agenda encompassed a broad range of policy areas including market access for goods and services, investment, government procurement, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, energy and raw materials, trade and sustainable development, and intellectual property rights.

    An official involved in the discussions noted, “The EU is showing a greater willingness to consider India’s perspective more favorably now. They have developed a better understanding of our concerns. This shift in attitude is also influenced by the broader geopolitical narrative, particularly in the context of the China-plus strategy in FTA negotiations.”

    The CBAM regulation aims to equalize the carbon costs borne by EU companies, which already comply with the EU’s Emission Trading System (ETS), by levying higher import duties on specified carbon-intensive products. This measure supports the EU’s commitment to achieving net-zero carbon dioxide emissions by 2050. Key products affected by CBAM include cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. In India, sectors such as iron and steel, and aluminum, followed by cement, are anticipated to be the most impacted.

    India’s proactive stance in these negotiations highlights its strategic approach to balancing environmental commitments with economic interests, aiming to mitigate the impact on its industries while aligning with global sustainability goals.

  • Chief Minister Appointed as Permanent GST Council Member

    PANJIM: In a significant governmental reshuffle, Chief Minister Pramod Sawant, who also holds the portfolio of Finance Minister, has been appointed as the permanent representative of the State in the Goods and Services Tax (GST) Council. This decision marks the end of Minister Mauvin Godinho’s six-year tenure as the State’s representative, a role he assumed during the leadership of former Chief Minister Manohar Parrikar.

    This strategic nomination, ratified by the Chief Minister-headed government, underscores the administration’s intent to bring a new dynamic to its representation in the GST Council. Last year, Godinho was entrusted with the critical task of rationalising GST rates as a member of the Group of Ministers (GoM). However, with Sawant’s appointment, Godinho will relinquish this influential position.

    Chief Minister Sawant is poised to participate actively in all forthcoming GST Council meetings, ensuring the State’s interests are robustly represented. It is noteworthy that in most other States, the Finance Minister traditionally assumes the role of GST Council representative, aligning Goa with this common practice.

    The GST Council, a pivotal body formed to oversee the intricate framework of Goods and Services Tax in India, is gearing up for its first meeting post the inauguration of the Narendra Modi-led government 3.0. Scheduled for June 22 in New Delhi, this meeting is expected to delve into the rationalisation of the indirect tax structure.

    Comprised of the Union Finance Minister and representatives from all States and Union Territories, the GST Council is charged with the responsibility of making crucial decisions on GST-related matters such as tax rates, exemptions, and administrative protocols. In 2021, Godinho played a vital role in two key GoM committees focusing on Revenue Analysis and Boosting the Real Estate sector.

  • SIAM Calls for Major GST Cuts to Boost India’s Two-Wheeler Market

    In a strategic move underscored by an urgent online report, the Society of Indian Automobile Manufacturers (SIAM) has formally appealed to the Ministry of Heavy Industries for a reduction in the Goods and Services Tax (GST) on two-wheelers. This industry body has advocated for a more nuanced tax structure, differentiated by the fuel types powering these vehicles.

    SIAM’s proposal calls for a substantial decrease in the base GST rate from the prevailing 28 percent to a more reasonable 18 percent. Moreover, the association has put forward a recommendation to further alleviate the tax burden on CNG and flex-fuel two-wheelers, suggesting a reduction to 12 percent. In an additional plea, SIAM has urged the ministry to abolish the 3 percent cess currently levied on all two-wheelers exceeding 350cc.

    The overarching goal of this initiative is to enhance the affordability of two-wheelers for the Indian populace. The current market scenario, burdened by soaring prices due to stringent new safety and emission regulations, sees consumers grappling with an exorbitant 28 percent GST, along with road tax, insurance premiums, and a 3 percent cess on higher capacity bikes. This financial strain is particularly stark when compared to other developing nations like Indonesia and Thailand, where taxes hover around a mere 7-11 percent. Additionally, the high taxation on eco-friendly vehicles threatens to stymie the growth and adoption of electric vehicles (EVs), a critical component of sustainable transportation.