New Delhi, February 16: In a massive news for youngsters and people who want to purchase a new bike as the Centre has dropped the custom duty on imported bikes by 25%.
The Central Board of Excise and Customs (CBEC) sent out a notification stating that custom duties on completely build units (CBU) has dropped from 75 percent to 50 percent for motorcycles with displacement above 800cc. But that's not all, custom duties on motorcycles under 800cc have also reduced from 60 percent to 50 percent.
Apart from CBU units, the rules have been heavily revised for completely-knocked-down (CKD) and semi-knocked down (SKD) units as well. The earlier tax of 30 per cent on (SKD) kit in pre-assembled form of motorcycles have been taken down by 5 percent and now sits at 25 percent.
However, the custom duty on import of engine, gearbox and transmission mechanism which are not pre-assembled (CKD) has been hiked from 10 percent to 15 percent. The hike in custom duty on CKD bikes is a clear hint that the government wants to promote local manufacturing.