Railways defers 15% freight surcharge, ups number of rakes for auto sector

For the beleaguered auto sector, which is looking to cut costs, the railways has decided to offer more rakes for the transportation of automobiles

The railways has deferred its busy season surcharge of 15 per cent on freight and hiked the number of rakes to be provided for the auto sector in a bid to increase freight loading, which is likely to take a hit due to the economic slowdown.

The national transporter on Thursday announced that it was suspending its busy season surcharge of 15 per cent, which is levied between October 1 and June 30, for the current season. “Considering the current economic scenario, to give a boost to the industry and freight, the railways has taken measures to facilitate industry, especially in reducing rail transport cost,” Railway Board Member (Traffic) P S Mishra told reporters. Additionally, a further waiver of 5 per cent will be given on loading mini rakes or smaller parcel size.

For the beleaguered auto sector, which is looking to cut costs, the railways has decided to offer more rakes for the transportation of automobiles. Earlier, it used to provide eight auto rakes, which has now been hiked to 26 and the national transporter has plans to provide as many as 50 rakes to the sector to transport their goods by this year end. “This is being done on the request of the auto sector,” Mishra said…

States rule out GST rate cut on automobiles amid grim revenue situation

Says slowdown in sector not linked to GST

Key states have expressed reservations on a cut in the goods and services tax (GST) rate for the auto sector because of the grim revenue situation, after the fitment panel refrained from recommending any such reduction.

Facing a deepening slowdown, the auto sector is pinning hopes on the GST Council meeting on September 20 for a GST rate cut from 28 per cent to 18 per cent. However, states including Bihar, West Bengal, Kerala, and Punjab are of the view that the slowdown in the auto sector is not because of the GST rate but structural issues in the economy.

“Bihar will not support any rate reduction on the auto sector, because the revenue position does not allow this,” said Sushil Modi, deputy chief minister, Bihar. Sushil Modi even ruled out supporting the sector by abolishing the cess component. “Where will the Centre get funds to compensate states? The revenue position is grim,” he said. The fitment committee in its meeting last week had stated a potential revenue loss of around Rs 50,000 crore annually in case the rate was reduced from 28 per cent to 18 per cent.

Tesla launches new $45,000 version of Model 3 sedan with mid-range battery

Although Tesla has promised a base-level version of the Model 3 priced at $35,000, so far it has only produced higher-cost versions

Automobile News : Tesla Inc on Thursday introduced a new $45,000 version of its Model 3 sedan on its website, launching the car as U.S. tax breaks for Tesla cars are about to decrease.

According to the website, the rear-wheel-drive model has a “mid range” battery, a range of 260 miles, 50 miles less than the long-range battery that the more expensive Model 3 is equipped with. (BS) 

The new version has a delivery period of six to 10 weeks, according to the website, which would customers eligible for the current $7,500 U.S. tax credit if they take delivery by the end of the year. The tax credit for Tesla cars will drop by half on Jan. 1.

Although Tesla has promised a base-level version of the Model 3 Sedan priced at $35,000, so far it has only produced higher-cost versions starting at about $49,000. Tesla has said that it would not manufacture the base-level version of the Model 3 this year.

Adding the mid-priced version of the Model 3 appears to be a strategic way to lure possible buyers who had been waiting for the lower-priced version. It is not clear how many of the more than 400,000 reservations for the Model 3 are for the base models.

| Business Standard |