Passenger vehicles may get costlier after duty hike
Published By : Prameya News Bureau | February 01, 2021 IST
Share
New Delhi, Feb 1: After a good December-January period when sales of passenger vehicles saw a surge in demand, those who wish to buy a car or a motorcycle may have to shell out more as the government on Monday announced to hike customs duty on some auto parts from 10 per cent to 15 per cent. The 5 per cent increase in duty applies to safety glass comprising toughened (tempered) or laminated glass, parts of electrical lighting and signaling equipment, windscreen wipers, defrosters and demisters (of a kind used for cycle or motor). Other automobile parts that will see an extra 5 per cent duty hike include ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships, instrument panel clocks and clocks of a similar type for vehicles, aircraft, spacecraft or vessels. The Automotive Component Manufacturers Association (ACMA), the apex body representing India's auto component sector, said that an increase in basic customs duty on select auto components will encourage local manufacturing of such items. "It is also heartening that the Budget outlay for the MSME sector has been doubled compared to last year. The auto component industry is dominated by MSMEs and this will provide them the necessary succour as the industry recovers," said Deepak Jain, President, ACMA. Jeetender Sharma, Founder and MD, Okinawa Autotech, said that the increase in customs duty on automobile parts would rightly encourage domestic manufacturing. He, however, urged the government to look at reducing the GST and reconsider the current taxation framework applicable on raw material and the final product in case of EVs, which could have provided the much-needed impetus to the industry. "The government could have also looked at aggravating the domestic demand by further incentivising individual and commercial consumption of EV pan-India," Sharma said. Sales of passenger vehicles increased by 13.59 per cent in December 2020, according to the data released by the Society of Indian Automobile Manufacturers (SIAM). A total of 2.53 lakh passenger vehicles were sold in December compared to over 2.22 lakh units sold during the same period of 2019. Two-wheeler sales also improved by 7.42 per cent on a year-on-year basis to 11.28 lakh units during the period under review. (IANS)
News7 Is Now On WhatsApp Join And Get Latest News Updates Delivered To You Via WhatsApp
You Might Also Like
More From Related News
Sensex crosses 74K mark in 1000 points rally
Kia unveils K4 compact sedan in US ahead of launch
realme 12x 5G: Pioneering 5G experience under Rs 12K
Adani Ports acquires Gopalpur Port in Odisha for Rs 3,080 crore
MCL becomes first ever company to achieve 200 MT coal production
Over $447 million in funding raised by 22 Indian startups last week
Naveen Jindal takes charge as President of Indian Steel Association
Maruti Suzuki acquires stake in homegrown AI startup Amlgo Labs
Will work to create advanced chip design facility in TN: Zoho's Sridhar Vembu
RBI issues new rules for self-regulatory organisations of banks, NBFCs
Startup Mahakumbh: Rise of entrepreneurs from tier 2, 3 cities big boost to ecosystem
Agency Banks to remain open during Annual Closing on March 31, Sunday: RBI
India records 5.9 pc mineral production increase in January
India now home to over 150 two-wheeler EV startups
Tata Chemicals shares plunge more than 8 per cent
Witnessed 100 pc surge in online business for academic year 2024-25: Physics Wallah
Narayana Murthy gifts Infosys stock worth over Rs 240 crore to 4-month-old grandson
India can create more jobs in esports, game development: CII
Centre to soon have dedicated policy to nurture deeptech startup ecosystem
Adani Group to invest Rs 1.2 lakh crore in FY25 in next phase of growth