Budget paves the way for India-US Harley diplomacy as customs duty on bigger bikes slashed | India News


Nueva Delhi: Before the next visit of Prime Minister Modi to the United States, the Budget of the Union may have raided the way for Harley’s diplomacy between the two countries with the Minister of Finance, Nirmala Sitharaman American Bike Company Harley- Davidson: Pay attention to a often repeated tariff reduction by President Donald Trump.
The budget also seemed to offer benefits for Tesla, the giant of the electric vehicle led by Trump Elon Musk’s confidant, but this relief seems to be more a lip service with the effective tax rate that remains the same.
In motorcycles, the budget reduced the duty of Customs not only for large bicycles with engines greater than 1600cc, but even the smallest, which makes it a generalized and substantial relief (the movement will also benefit other manufacturers such as Honda, Suzuki, Ducati and Ducati and KTM).
For motorcycles of 1600cc and superiors, the customs duty was significantly reduced from 50% to 30% for fully built imported bicycles. For those who arrive through semi-health kits (SKD), the duty comes from 25% to 20%, while for completely captivated (ERC) it is reduced from 15% to 10% current.
For bicycles where the engine is less than 1600cc, customs duty is reduced from 50% to 40% existing. In skds, it is reduced from 25% to 20%, and for CKD, it is reduced from 15% to 10%.
The movement will see that the price of larger bicycles decreases significantly, by at least a few Lakh rupees, in a direct benefit for products that are made in the United States (Harley is doing smaller motor bicycles in India, approximately approximately 440cc.
It is believed that the Government decided to reduce the import duty to please the new US administration, since President Trump has almost been admonishing several countries, especially China, India and Brazil, for being “tremendous rates.” With Trump threatening that “we are not going to let that happen more”, governments in key commercial nations have been looking for ways and means to calm the nerves.
On the other hand, the duty of Tesla (and other imported cars) is not tangible in its real sense.
The budget reduces the owner’s duty in imported cars that cost more than $ 40,000 (around RS 35 Lakh) from the current 100%, to 70%, a measure that would apparently benefit a car company like Tesla that has spoken On having a presence in India, but you are not ready to invest in a local factory.
However, while reducing the basic customs duty by 30%, the budget replaced the 10% social welfare surcharge in the previous customs duty with 40% agricultural infrastructure and development development (AIDC).
Indeed, the cumulative duty in any new car, with a price greater than $ 40,000, which is imported to India continues to be 110%.
So, in effect, there is no effective change in duty in the field in case Musk decides to begin your electric car business in India through the import route.
The government had already welcomed the American businessman Maverick with a special policy of manufacturing electric vehicles, which many saw as a ‘Tesla package’. The package, which was announced around March of last year, promised any company to invest more than $ 500 million for a factory with a highly subsidized import tax of 15% for around 8,000 cars annually when they started working for a base manufacturing However, while the government expected anxiously, Musk backed away at the last minute, in a great setback to the plans.
Will the new lower holders rates help India to negotiate better with the US. During commercial conversations, will only time say it.





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