Helmet Manufacturers Association urges government to reduce GST on helmets, and support setting up of testing facilities

Road accidents in India in addition to the loss of lives also hurts the economy with an estimated 3.14% loss to India’s GDP. Rajeev Kapur, President of the Two-Wheeler Helmet Manufacturers Association and MD of Steelbird Helmets has suggested that the government should revise the Goods and Service Tax (GST) on helmets from the current 18 percent to 5 percent.

This move he says is essential, considering helmets as life-saving devices, to make them more economically accessible for the masses and thereby increase overall compliance with helmet usage.

Furthermore, he has asked that authorised institutions such as IITs, QCI, and NGOs should establish testing facilities for helmets. The current setup of testing laboratories for helmets in India is insufficient to meet the requirements of the helmet industry. This strategic step is intended to streamline the testing process, ensuring that helmets adhere to necessary safety standards and are readily available in the market.

He further recommends allocating 1% of Corporate Social Responsibility (CSR) funds for road safety initiatives. It is proposed that every Corporate company should be directed to spend the funds to spread road safety awareness in schools, colleges, nearby villages and towns. Corporates can also undertake programs like installation of signage, rumble strips, speed breakers etc. along with various other essential resources and programs aimed at reducing road accidents and associated fatalities including distribution of helmets to the lower income group at subsidized cost.

 

Kapur has expressed concern over the limited enforcement of mandatory helmet usage rules and has called for a nationwide extension of this regulation. In 2005, Indian Government promulgated Section 138 (4) (f) of the Central Motor Vehicles Rule (CMVR). As per this rule, at the time of purchase of the two-wheeler, the manufacturer of the two-wheeler shall supply a protective headgear conforming to specifications prescribed by the Bureau of Indian Standards (BIS) under the Bureau of Indian Standards Act. Therefore, the two-wheeler manufacturer must supply minimum 2 BIS compliant helmets each for the rider and the pillion rider. This rule should be enforced across India in complete spirit. At present, he claims that the law is followed in only 8 states, a uniform implementation is seen as imperative to ensure consistent road safety practices across the country. It is important to note that the mandatory helmet usage rules are not followed in Tier II, III cities including the village area.

These recommendations, if implemented, aim not only to address the immediate economic impact of road accidents on India’s GDP but also to foster a safer road culture, aligning with India’s commitment to halve road fatalities by 2030.

Source::: FINANCIAL EXPRESS,  dated 16/01/2024.