Bajaj Auto CEO Rajiv Bajaj Slams 28% GST On CNG Bikes, Demands Tax ExemptionÂ
Bajaj Auto CEO Rajiv Bajaj Slams 28% GST On CNG Bikes, Demands Tax ExemptionÂ
Rajiv Bajaj, CEO of Bajaj Auto, has once again voiced his opposition to the 28% tax on bikes and scooters, highlighting the disparity in GST rates between electric vehicles (EVs) and CNG-powered vehicles. While EV scooters and bikes are taxed at 5%, CNG bikes like Bajaj recently launched Freedom 125 attract a 28% GST.
Bajaj argued that CNG-powered vehicles are considered clean energy vehicles, yet they are subject to the same high tax rate as polluting vehicles. He demanded tax exemption on CNG bikes, emphasizing their eco-friendly nature.
In an interview with CNBC TV18, Bajaj revealed plans to sell one lakh CNG bikes by the festive season and introduce new clean energy vehicles, including another CNG motorcycle, ethanol-powered bikes and three-wheelers, and affordable and premium electric scooters.
The company’s EV business is already profitable, with an 18% market share. Bajaj’s Chetak Scooter is a strong competitor in the EV segment, rivaling TVS iQube.
Sales of the Freedom CNG bike are increasing, with 2000 units sold and 9000 expected to be delivered in August. By January, the company aims to sell 40,000 CNG bikes monthly.
