Union Finance Minister has presented the Union Budget 2018. Under this budget, the taxation on CKD (Completely Knocked Down) two-wheelers and motorcycle accessories has been increased, which will now lead to a hike in their prices.
CKD motorcycles are the ones which are locally assembled in India with the kits imported from other countries. The list of models covered under this includes a slew of models from Triumph, Benelli, Honda, Hyosung, Kawasaki, among others. The custom duty for these motorcycles has been increased from 10 per cent to 15 per cent. As for motorcycle accessories, the custom duty used to vary between 7.5 per cent and 10 per cent. This has now been increased to 15 per cent.
Justifying the move, the Finance Minister said that there is substantial potential for domestic value addition in certain sectors, like food processing, electronics, auto components, footwear and furniture. The Budget’s focus was on boosting rural economy and the agriculture sector, and encouraging industries to move towards the ‘Make in India’ movement. The hike in custom duties can be seen as a move targeted at pushing brands to start manufacturing motorcycles in India rather than using the CKD route as a way to attract lower taxes.
Article Source : BikeWale