Imported motorcycles from high-end brands, including Harley Davidson and Triumph, are set to get cheaper as the government slashed customs duty to 50 %.
Imported motorcycles from high-end brands, including Harley Davidson and Triumph, are set to get cheaper as the government slashed customs duty to 50 %.
Earlier, import of motorcycles with engine capacity of 800cc or less used to attract 60 % duty, while those with capacity of 800cc or more attracted 75 % duty.
The Central Board of Excise and Customs (CBEC), through a notification on February 12, has slashed the duty on both these variants of motorcycles imported as completely build units (CBU) to 50 %.
Experts said the import duty rates have been rationalised for these motorcycles as it has been an industry demand for long and such high-end bikes are not manufactured in India at present.
"The government has reduced the basic customs duty rate to 50 % on import of completely built motorcycles. The reduced rates should abet price reduction of motorbikes which are imported in a finished state for sale in India," EY Partner Abhishek Jain said.
According to the CBEC notification, import duty on engine, gearbox, or transmission mechanism as a completely knocked down (CKD) kit in pre-assembled form of motorcycles, not mounted on a body assembly, has been reduced to 25 %.
These pre-assembled parts attracted customs duty of 30 % earlier.
Meanwhile, to promote local assembling as part of 'Make in India' initiative, the CBEC has hiked customs duty to 15 % on import of engine, gear box and transmission mechanism as a CKU kit which are not pre-assembled.
The duty on these was 10 % earlier.
"By increasing customs duty on engine, gearbox and transmission mechanisms, government is sending out a loud message that it will protect automobile ancillary industry. This policy would encourage global auto ancillary industry to have a preference for India as a manufacturing base for global supply," Deloitte India Senior Director Anoop Kalavath said.
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