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Industry & Economy - Excise and Customs

SIAM wants excise duty to be cut to 16%

Our Bureau

New Delhi , June 5

WITH the excise duty reduction on passenger cars having put the domestic market in top gear in the last fiscal, the industry is asking for a further reduction in excise in the forthcoming Budget.

In its Budget 2004-05 wish list, the Society of Indian Automobile Manufacturers (SIAM) has asked for a cut in excise duty on cars and utility vehicles from the current 24 per cent to 16 per cent. The association has also asked for the removal of the 1 per cent national calamity contingent duty imposed last year and that the special additional duty of 4 per cent be withdrawn.

On the customs duty front, SIAM has urged that in line with overall rationalisation of duties, the customs duty on CKD (completely knocked down) vehicles be brought down from 25 per cent to 20 per cent.

The association's wish list also demands for a revisit of bound rates for customs duty on completely built commercial vehicle imports. While currently the duty stands at 25 per cent for both new and second-hand imports, SIAM has proposed an increase to 60 per cent for new and 105 per cent for used imports.

SIAM has also asked for a reduction in customs duty on import of moulds, dies, checking fixtures, injection moulds and welding jigs from the current 25 per cent to 20 per cent.

In addition, the association has suggested that the customs duty on key raw materials such as CR steel, HR steel, alloy steel, etc., be reduced from the current 25 per cent to 10 per cent to help promote the growth of the domestic automobile and auto component industry.

More Stories on : Excise and Customs | Cars | Industry Associations | Budget

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