Shares of two-wheeler majors Hero MotoCorp, Bajaj Auto and TVS Motor Company soared on Wednesday after Finance Minister Nirmala Sitharaman’s comment that the GST Council will consider the proposal to cut the Goods and Services Tax on two-wheelers.
Addressing a CII conference on Tuesday, she said that the suggestion to lower tax on two-wheelers is a good one as this category is “neither a luxury nor a sin good” and hence merits a rate revision. Consequently, this will be taken up with the GST Council, she added.
Around 10.48 a.m., shares of Hero MotoCorp were trading at Rs 3,095.40, higher by Rs 124.35 or 4.19 per cent from its previous close. It touched its 52-week high of Rs 3,124.95 per share during the initial trade.
Shares of Bajaj Auto were trading at Rs 3,106.85, higher by Rs 96.85 or 3.22 per cent from its previous close.
Similarly, TVS Motor Company’s shares were trading 4.51 per cent higher at Rs 465.90 per share.
Two-wheelers currently attract 28 per cent GST and the industry has for long demanded for the rate to be lowered.