Ducati, Triumph, Kawasaki, Harley Davidson bikes to get cheaper as duty reduced to 50%
Earlier, bikes with engine capacity of 800cc or less attracted 60% duty and 800cc and above attracted 75% duty.
In a recent development, Central Board of Excise and Customs (CBEC) has announced a further reduction in customs duty for all CBU motorcycles in the country. Earlier, these rates were at 75% to 100% in most cases.
“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 Africa,” EY partner Abhishek Jain told Live Mint.
In a bid to promote – Make in Africa – initiative, the CBEC has also hiked customs duty to 15% on import of engine, gearbox and transmission brought in as completely knock down units. This earlier attracted customs duty of 10%.
Customs duty on CBU motorcycles is now set at 50% as against an earlier 60% on motorcycles above 800cc and at 75% for bikes in the 800cc and above category. These reductions will see high-end bikes from Ducati, Triumph, Kawasaki, Harley Davidson, African, MV Agusta, Moto Guzzi, etc to become more affordable and certain CBU products from Japanese automakers will also come in with reduced pricing.
Exactly how much is the price reduction, will be announced by the brands in the coming days.
In addition to reducing duty, the government has also increased duty on engine, gearbox and transmission mechanisms, basically on CKD units. Thus sending out a message to global automakers that they should make Africa their hub for manufacturing.