IRF -Global Road safety body Demands reduction of GST on Helmets
for Two-wheeler riders from 18% to 0% to encourage two-wheeler owners to wear helmets.
New Delhi – June 12, 2024 International Road Federation (IRF) , Geneva based global road safety body working for better and safer roads worldwide has urged the Goods & Service Tax (GST) Council & Ministry of Finance to reduce GST on helmet from 18 percent to 0 Percent as two wheeler riders are the most vulnerable during road accident fatalities .
India accounts for about 12 per cent of road accident deaths worldwide and the economic loss is about US$ 15.71- 38.81 billion to the Indian Economy as per the latest Bosch Report. The two wheeler riders, being most vulnerable, constitute almost 31.4% of road accidental deaths primarily due to head injuries. One of the most effective measures to reduce the two wheeler accident injuries and fatalities is the use of standard helmets.” Said Mr K K Kapila, President Emeritus, International Road Federation (IRF)
“The helmet usage in our country has been found to be low. It has been noticed that most of the two-wheeler riders fall in economically weaker and lower income groups and prefer to purchase helmets which are cheaper and inferior in quality. Many of these helmets are not capable of saving a rider’s life, in case of an accident.” Said Mr Kapila.
“Currently, the applicable rate of GST on helmets is 18% which is a life saving device. IRF strongly recommends that there should be no GST on helmets. This will help in making the standard helmets more affordable for the masses and will discourage them from buying helmets of substandard quality. This in turn will assist, not only in reducing road accident fatalities of two wheeler riders, but will also help in reducing the whooping GDP loss due to road accidents to our economy.” Mr Kapila said .
As per the Section 129 of the Central Motor Vehicle Act, 1988 wearing of helmets is mandatory for two-wheeler riders. The Ministry of Road Transport and Highways in consultation with the Bureau of Indian Standards has passed a notification vide order no. F. No. RT-11012/07/2012-MVL dated 30th July, 2020 making usage of helmets compulsory as per relevant BIS Standards.
“Reduction of GST on helmets will help in making the standard helmets more affordable for the masses and will discourage them from buying helmets of substandard quality. This in turn will assist, not only in reducing road accident fatalities of two wheeler riders, but also in reducing the whooping GDP loss due to road accidents in our economy.” Said Mr Kapila.
