In country like India, where large no. of people feel Helmets an extra financial burden. Is it rite to escalate the prices and encourage un-organised helmets manufacturer.
Hey, Everyone. In India or market, economics and finance expert worldwide knows that a fresh taxation system which is named as GST is scheduled for launch from 01-07-2017. Many industries like Tractor manufacturer and its component makers raise voice against GST. Now a new group joins them, ‘The Helmet Industry’.
Is their voice against GST is right or no?
Rajeev Kapoor, Managing Director of Steelbird Group states that “Helmet is a life saving tool and countries like India, people don’t take it seriously. In this condition, if you’ll pick helmet in 18% slab then prices will be escalated and people will not buy ISI Mark helmets at sky high price.”
Now we tell you some behind the curtain facts. The no. of helmets sales in India is divided into major two categories. First one is of ISI mark and the other is without ISI mark. These unorganised manufacturing units actually sales 10 times more than the organised manufacturer.
It means in India 70-75 percent helmets are not at up to the mark of quality, but people use to buy those. Because they are cheap and people using helmets just because of traffic police. Some passionate riders (or aware riders we can say) use ISI and high priced helmets. And now if helmets will into the 18 percent GST tax slab then you can understand, sales of quality helmets will slightly go down and the unorganised manufacturer will cover more percentage of the market.
According to an article on Economics times, Sunil Dhingra, Founder and CEO at Jazzmyride.com, said “Tax on helmets has gone from 12.5% to 18%. Even in some regions which were promoting safety like Rajasthan and Chennai had zero percent tax. Helmet is an essential safety gear. Even in a country like India where so many road accidents happen every minute, it is a huge dent on the safety part of it. Some special measures need to be taken so that riding gears on the safety front like LED lamps, helmets, riding gears for bikers are re-classified.”
What ISHIMA is saying?
ISHIMA (Industry body ISI Helmet Manufactures Association) also not in favour of current GST slab for helmets. ISHIMA states that “this GST will only mushroom the cheap quality and roadside helmets. This will encourage the death in road accidents and they can play with riders life more freely.
Many of social, business and motor industry expert are not in favour of 18% GST slab for helmets. What your opinion, do you think this is a good move or something else? Please let us know in comment saction.