The construction equipment industry, which has approached the central government to lower the Goods and Service Tax (GST) rates to push demand up, remained bullish on its future growth prospects on the back of the government initiative to boost road construction.
"We are quite bullish on the growth prospects of the industry. The construction equipment business has been growing and this year we expect 30 per cent growth," said Anand Sunderasan, member of the CII Excon 2017 - a construction equipment summit to be organised in Bengaluru November 12-16.
During a roadshow for the summit here, he said the industry has approached the Central government to reconsider the high tax rates applicable to most of the industry under GST.
"We have informed the government from different forums that 80 per cent of the construction equipment are falling under 28 per cent GST. In the past, taxes were around 15-18 per cent," he said adding that the consumers would have to factor in the higher tax rate.
There were implementation challenges in July, but the industry has since recovered, he added.
The Central government announced an outlay of Rs 6.92 lakh crore over the next five years towards construction of 83,677 km of roads, which would likely result in higher purchase and lease of construction equipment.
--IANS
bdc/vd
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)