The growth of the helmet industry with the boom in the two-wheeler segment in India has been a growth story in itself. The segment has witnessed growth in both urban and semi-urban markets due to increasing purchasing power and desire to own two-wheelers. Along with this the helmet industry has also been flourishing.
As the second most populous country in the world, India comprises of middle and lower class segments. Transport in India is still a challenge, so many people in these segments opt to travel by two-wheelers. The two-wheeler industry comprises of various vehicles such as motorbikes, scooters and mopeds, which are available in a diverse range from affordable to classy bikes.
With so many two-wheelers plying on Indian roads in Tier I, II and III cities, it also emphasizes on the necessary safety measures and precautions for commuters. An average of 500,000 people die every year in road accidents in India and more than 30% of these people ride two-wheelers.
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In view of such an alarming number of road accidents, helmets are extremely important for road safety. They are lifesaving equipment and an essential product whether you are driving or sitting in the back. Helmet law has been emphasized by many state governments in India.
But the government should also pay attention to getting quality helmets at a reasonable price for the bike riders to be safe.
Therefore, unless helmets are exempted from tax, their prices will remain high and this will retard both the government’s intention and efforts to promote the wearing of quality helmets.
Apart from this, in a price sensitive country where people consider helmets as an economic burden, instead of 18 per cent, 12 per cent GST on helmets, to make people buy good quality helmets, understand its importance. will inspire.
According to the Mint report, about 13 people lose their lives in road accidents every day and most of these people die because of poor quality helmets which are not able to protect them at the time of accident. Helmet is a life-saving device just like medicine. Therefore, just as there is no GST on medicines, helmets should also be exempted from GST.
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Since helmets are directly related to safety, it is extremely important to give it importance as soon as possible. Helmets should not be compared with other commodities. The purpose that helmets serve is far better than other things and no GST policy should apply on helmets as helmets are the products which have had a negative impact on it.
Therefore, the rate of GST on helmets should be brought down to 12 per cent instead of 18 per cent.
This will have far-reaching benefits. This will eventually help in bringing down the budget of road safety expenses by the government to 1.5% which is currently around 3%. Road safety expenses include ambulances, insurance, police, traffic police, hospitals and doctors. This will definitely be a huge saving for the government.