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The Federation of Automobile Dealers Associations (FADA) has sought a cut in Goods and Services Tax (GST) on two-wheelers from 28 per cent to 18 per cent. It strongly asserts that two-wheelers, being essential for millions, should not be categorised as sin goods or luxury items for GST taxation purposes.

The industry body said it has appealed to the finance minister, chair of the GST Council, all GST Council members, the ministry of heavy industries, which supervises the automobile sector, and the ministry of road transport & highways. It noted that this timely and decisive intervention would help in making two-wheelers more affordable, reviving demand and reinvigorating an industry that has seen a significant slump in sales over the past few years. 

FADA stated that two-wheelers play a pivotal role in providing affordable mobility to a large segment of India's population, especially in rural areas where public transportation is sparse. It also said that over the past few years, the prices of various two-wheelers have risen significantly, impacting their affordability for consumers. This surge in prices can be attributed to multiple factors, including the rising cost of raw materials, stricter emission norms and higher taxes and levies.