Super-rich tax, auto sector proposals Modi govt's two own goals: Chris Wood

The government decided to cut goods and services tax (GST) on electric vehicles (EVs), while there is a proposal to hike registration fee for new vehicles besides a proposal to scrap old vehicles

The ‘super-rich’ tax imposed by the government in the recent Budget and the proposal to scrap old vehicles and hike the registration and renewal charges for vehicles are the two ‘own goals’ of the Narendra Modi – led government, said Christopher Wood, global head of equity strategy at Jefferies in his weekly note to investors, GREED & fear.

Though he remains a believer in the structural reform agenda of the re-elected government, such a move targeting the affluent salaried middle classes, he says, makes little sense in a government whose stated aim via the bankruptcy legislation and the like, is