High-end bikes to get cheaper, import duty on 800cc or more motorcycles slashed to 50%

The Central Board of Excise and Customs (CBEC) slashed the import duty of bikes with engine capacity of 800cc or more as completely build units (CBU) to 50%.

autos Updated: Feb 13, 2018 16:16 IST
Press Trust of India
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The new 2018 Ducati Panigale V4 S.

If you are looking for a good deal for a high-end bike, here’s a good news. Imported motorcycles from big brands, including Harley Davidson and Triumph, are set to get cheaper as the government slashed customs duty to 50%. Earlier, import of motorcycles with engine capacity of 800cc or less used to attract 60% duty, while those with capacity of 800cc or more attracted 75%.

The Central Board of Excise and Customs (CBEC), through a notification on February 12, slashed the duty on both these variants of motorcycles imported as completely build units (CBU) to 50%. Experts said the import duty rates have been rationalised for these motorcycles as it has been an industry demand for long and such high-end bikes are not manufactured in India at present. “The government has reduced the basic customs duty rate to 50% on import of completely built motorcycles. The reduced rates should abet price reduction of motorbikes which are imported in a finished state for sale in India,” EY Partner Abhishek Jain said.

Harley Davidson’s Street 750.

According to the CBEC notification, import duty on engine, gearbox, or transmission mechanism as a completely knocked down (CKD) kit in pre-assembled form of motorcycles, not mounted on a body assembly, has been reduced to 25%. These pre-assembled parts attracted customs duty of 30% earlier.

Meanwhile, to promote local assembling as part of Make in India initiative, the CBEC has hiked customs duty to 15% on import of engine, gear box and transmission mechanism as a CKU kit which are not pre-assembled. The duty on these was 10% earlier.

“By increasing customs duty on engine, gearbox and transmission mechanisms, government is sending out a loud message that it will protect automobile ancillary industry. This policy would encourage global auto ancillary industry to have a preference for India as a manufacturing base for global supply,” Deloitte India Senior Director Anoop Kalavath said.

First Published: Feb 13, 2018 16:16 IST