FADA Advocates Vehicle Depreciation Benefits and Corporate Tax Reductions

The Federation of Automobile Dealers Associations (FADA) has urged the government to introduce vehicle depreciation benefits for individual taxpayers to boost automobile demand. Additionally, FADA calls for reducing corporate tax for LLPs, proprietary, and partnership firms, highlighting its potential impact on the auto dealership community.

The Federation of Automobile Dealers Associations (FADA) on Friday called on the government to introduce vehicle depreciation benefits for individual taxpayers. This move, according to FADA, would not only expand the taxpayer base but also stimulate automobile demand.

In its pre-budget wishlist, FADA also urged the finance ministry to lower corporate taxes for LLPs, proprietary, and partnership firms. FADA President Manish Raj Singhania emphasized that these measures could broaden the number of income tax filers and invigorate the automobile market.

Singhania pointed out that while the government has already reduced corporate tax to 25% for private limited companies with a turnover up to Rs 400 crore, extending similar benefits to LLPs, proprietary, and partnership firms is critical for the auto dealership sector. He strongly encouraged the inclusion of these incentives in the upcoming budget to boost both the automotive industry and the broader economy. Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for 2024-25 on July 23.