GST on Helmets: IRF Urges Zero Tax for Safety
Jun 12, 2024 13:36
The International Road Federation (IRF) calls for zero GST on helmets to make them more affordable and encourage their use, citing high road accident fatalities in India.
New Delhi, Jun 12 (PTI) International Road Federation (IRF) on Wednesday urged the Goods and Services Tax (GST) Council and the Ministry of Finance to reduce tax on helmets from 18 per cent to nil, to encourage the use of the safety gear.
IRF in a statement said two-wheeler riders are most vulnerable during road accident fatalities and lowering GST rates on helmets will help in making helmets more affordable for the masses amid increasing road accident fatalities.
Citing a Bosch Report, IRF said India accounts for about 12 per cent of road accident deaths worldwide and the economic loss is about USD 15.71-38.81 billion to the Indian Economy.
"The two-wheeler riders, being most vulnerable, constitute almost 31.4 per cent of road accidental deaths primarily due to head injuries. One of the most effective measures to reduce the two-wheeler accident injuries and fatalities is the use of standard helmets," said IRF president emeritus K K Kapila.
Kapila added that the helmet usage in India has been found to be low as it has been noticed that most of the two-wheeler riders fall in economically weaker and lower income groups and prefer to purchase helmets which are cheaper and inferior in quality.
Currently, the applicable rate of GST on helmets is 18 per cent which is a life saving device.
"IRF strongly recommends that there should be no GST on helmets," Kapila said, adding that this will help in making the standard helmets more affordable for the masses and will discourage them from buying helmets of sub-standard quality.
As per Section 129 of the Central Motor Vehicle Act, 1988 wearing of helmets is mandatory for two-wheeler riders.
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.