New Delhi sources have stated that in order to promote local manufacturing, Finance Minister Arun Jaitley had announced an increase in basic customs duty by 5-7.5% on cars, bikes and SUVs, which are imported as completely knocked down (CKD) units as an effect to this announcement, luxury cars will get dearer by Rs 1.25-5 lakh, and this will jolt the demand of luxury cars.
On the recent announcement made by Finance Minister on the Union Budget 2018, Rahil Ansari, head, Audi India, said: “For the luxury auto sector, the Union Budget 2018-19 is a disappointing and is against the spirit of partnership. As a manufacturer, we have a core social responsibility towards our workforce and the dealer network.”
He added that Motorcycle companies like Triumph will be affected due to
the increase in tariff for CKD units and the luxury carmaker pointed that the
Budget definitely needed an inclusive view for the luxury automobile industry,
which would have helped the industry to rebound and create more jobs.
Cess on Automobiles, Rubber been abolished New Delhi sources have stated that to ensure smooth roll out of Goods and Service Tax, the Central Government has abolished cesses on goods and services included in the last three General Budgets viz 2015-16, 2016-17 and 2017-18, and starting from July 1, 2017 with GST in place the government will also abolish cess on automobiles. Through Taxation Laws Amendment Act 2017, The Industries (Development and Regulation) Act 1951 Cess on Automobile will no longer be applicable.
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