GST Exemption on Helmets to promote Road Safety proposed by IRF

The International Road Federation (IRF) has proposed to the government that a goods and services tax (GST) on helmets will stimulate their use, as per the reports. The IRF is acutely aware of the rising number of fatalities among two-wheeler riders as a result of a lack of helmet use.

The authority has demanded that the GST on helmets be exempt. They claimed that such a decision would considerably improve traffic safety. In India, helmets are currently subject to an 18% GST, which is a hefty cost.

According to the most recent report provided by the Ministry of Road Transport and Highways (MoRTH), Over 461,000 traffic accidents occurred in India in 2022, resulting in 168,000 deaths. Surprisingly, 50,029 of these fatalities involved two-wheeler riders who were not wearing helmets. Surprisingly, more than 70% of the casualties were individuals riding on two-wheelers.

Reports says, countries where two-wheelers outsell four-wheelers have lower helmet usage rates. India has legislation in place to avoid deaths caused by two-wheeler accidents on the road. Helmets are currently required to be worn while riding in India. However, infractions of this law occur on a daily basis across the country, not only in rural villages but also in major cities.

Furthermore, the survey stated that many two-wheeler riders are obliged to choose the lowest helmets accessible because to the 18% GST added price, which makes a piece more expensive. Unfortunately, cheap helmets may not fulfil the necessary safety standards. The IRF President emphasised the need of abolishing the GST on helmets since it would make high-quality helmets more affordable to the general people and discourage the purchase of low-quality or substandard options.

Section 129 of the Central Motor Vehicle Act of 1988 states that all two-wheeler riders must wear helmets. In Delhi, breaking this law can result in fines of up to Rs. 1,000, and multiple breaches can result in a three-month suspension of the rider’s driving licence.

Delhi, the capital city, is one of the most famous regions with considerable noncompliance with helmet usage. According to data from the Delhi Police, nearly 100,000 challans were given to two-wheeler riders in the first four months of the current calendar year.