Indian Import Duty On Complete Knock Down Car imports Remain Unchanged.
Indian Government has announced that there will be no further reduction in the Complete Knocked Down (CKD) import duties. Earlier Finance Minister Pranab Mukherjee made certain alterations in the definition of completely knocked down kit imports, bringing components like pre-assembled engine, gear box, transmission and chassis under the scope of increased import duty by 30% from the original 10%.
Ms. Angela Merkel, the German Chancellor in India, spoke to the Indian Government lobbying for a reduction in this duty. But the Indian Government has made its stance of not reducing the duties further by making an official statement about the same.
The Indian Government feels that it is losing out on a lot of revenue by not taxing this route of car trade and has hence levied these duties in India.
Auto makers like Audi, Jaguar, Volvo, Mercedes etc are the brands that stand to lose a lot in the wake of this decision, not to mention the Japanese auto manufacturers who will be hit worst owing to the recent Tsunami in Japan. Experts are worried about the future prospects of these international manufacturers and many are worried if these manufacturers will be able to normalize their production strategies soon.
Source: motoism.com
CAclubindia
