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Helmet Manufacturers Seek GST Cut and Testing Facilities Support from Govt

Last updated: 17 January 2024


Comprehensive Road Safety Overhaul Proposed to Combat Economic and Human Losses in India

India, plagued by a rising toll of road accidents, not only grapples with the tragic loss of lives but also endures a substantial blow to its economy, estimated at 3.14% of the GDP. In response to this pressing issue, Rajeev Kapur, President of the Two-Wheeler Helmet Manufacturers Association and MD of Steelbird Helmets, has put forth a multifaceted plan aimed at mitigating both the human and economic costs associated with road accidents.

GST Revision for Helmets

A key proposal from Kapur is the revision of the Goods and Service Tax (GST) on helmets, urging the government to reduce the current rate of 18% to 5%. Emphasizing helmets as life-saving devices, this move is deemed crucial to enhance affordability and increase overall compliance with helmet usage, particularly among the masses.

Helmet Manufacturers Seek GST Cut and Testing Facilities Support from Govt

Testing Facility Enhancement

Kapur highlights a critical inadequacy in the current testing infrastructure for helmets in India. To rectify this, he advocates for the establishment of testing facilities by authoritative institutions such as IITs, QCI, and NGOs. This strategic step aims to streamline the testing process, ensuring that helmets adhere to necessary safety standards and are readily available in the market.

CSR Allocation for Road Safety Initiatives

In a bid to engage corporates actively in road safety initiatives, Kapur recommends allocating 1% of Corporate Social Responsibility (CSR) funds for such programs. Corporates are urged to invest in spreading road safety awareness in educational institutions, villages, and towns, along with the installation of essential infrastructure like signage, rumble strips, speed breakers, and the distribution of subsidized helmets to the lower-income groups.

Nationwide Enforcement of Helmet Usage Rules

Expressing concern over the limited enforcement of mandatory helmet usage rules, Kapur calls for a nationwide extension of Section 138 (4) (f) of the Central Motor Vehicles Rule (CMVR). According to this rule, two-wheeler manufacturers must provide BIS compliant helmets at the time of purchase. Currently enforced in only 8 states, a uniform implementation across the country is deemed imperative to instill consistent road safety practices, especially in Tier II, III cities, and village areas where compliance is notably lacking.

Conclusion

Rajeev Kapur's comprehensive recommendations, if implemented, not only seek to alleviate the immediate economic impact of road accidents on India’s GDP but also aim to cultivate a safer road culture. Aligned with India’s commitment to halve road fatalities by 2030, these proposals present a holistic approach towards creating a more secure and sustainable road environment for all citizens.

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