New Delhi: Auto industry body SIAM on Friday sought an increase in customs duty for imported fully-built commercial vehicles to 40 percent from the current 25 percent as part of its wish list ahead of the Budget.
Society of Indian Automobile Manufacturers (SIAM) has also suggested the government to not change customs duty on completely built units (CBU) of cars and two-wheelers.
Customs duty on two-wheeler and cars currently ranges from 50-100 percent.
"With respect to customs duty, SIAM has suggested to the government that for CBU of cars and two-wheelers, rates should remain at the same level. But, for commercial vehicles CBUs, rates should be increased from 25 percent to 40 percent, which is the bound rate committed by India in WTO," SIAM Deputy Director General Sugato Sen said in a statement.
However, 40 percent rate should not be applicable to completely knocked down units (CKD) and semi-knocked down (SKD) units.
Import duty on CKD units currently ranges between 15 percent and 30 percent, depending upon the type of the vehicle.
SIAM has also asked the government to bring back 200 percent weighted deduction of research and development (R&D) expenses, as it was before, as the direct tax rates have not been reduced as originally outlined by the government while linking the two.
"R&D incentive is more important for the automobile industry today as we have to invest a significant amount of money over the next few years for R&D to meet various emission and safety improvements in India," Sen said.
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Updated Date: Jan 25, 2019 16:53:47 IST