Import duties on high-end bikes reduced

There’s good news for premium bike buyers. Government has slashed the custom duties on high-end bikes.

The completely-built-up(CBU) bikes below 800cc were previously taxed at 60 per cent but with this new development, these bikes will attract 10 per cent less custom duties at 50 per cent. It’s the same story with the CBU bikes above 800cc. These bikes had a custom duty of 75 per cent but will now attract 50 per cent duties. 

The Central Board of Excise and Customs (CBEC) have made some changes to the duties of completely-knocked-down (CKD) and semi-knocked down (SKD) units as well. The duties on engine, gearbox or transmission as a completely knocked down (CKD) kit in pre-assembled form of motorcycles, not mounted on body assembly has been reduced to 25 per cent. These units used to attract 30 per cent duties earlier. Interestingly, the government has hiked customs duty on import of engine, gearbox and transmission mechanism which are not pre-assembled to 15 per cent from 10 per cent. This is being done to promote local manufacturing.

The changes in import-duties are bound to affect most of the big bike companies. While BMW imports most of its litre-class and above bikes from Germany, Yamaha, Suzuki and Kawasaki bring theirs from Japan. Ducati and Triumph bikes won’t be affected by these changes as most of their bikes come from Thailand and benefits from Free Trade Agreement (FTA).