SIAM for uniform excise duty on vehicles

By Our Corporate Reporter

CHENNAI, DEC. 11. The Society of Indian Automobile Manufacturers (SIAM) has submitted its recommendations to the Government for the forthcoming 2001-02 budget with the focus on the much awaited auto policy. It has made specific reference to the Central excise duty, the customs duty, the licensing policy and R & D.

Mr. Venu Srinivasan, President, SIAM, said, ``Our recommendations are aimed at inducing the overall growth of the economy, triggered by the auto industry that contributes around four per cent of India's industrial production.''

The association has suggested a uniform rate of central excise duty on all vehicles by 2003. Similarly, a gradual phasing out of Central sales tax and uniform sales tax rates have been suggested to ensure introduction of VAT at the earliest to reduce the cascading effect of various levies.

The SIAM is not in favour of a Central excise structure for passenger cars based on engine capacity and has suggested a uniform duty irrespective of the engine size. This will ensure the broad philosophy of the free market concept.

The present high duties on passenger cars directly impact the vehicle density. To increase the demand and penetration of this category of vehicles, a reduced Central excise duty of 32 per cent in place of the existing 40 per cent has been suggested.

In the case of used / second hand CBU, the customs duty of 70 per cent ad valorem or specific duty whichever is higher is to counter possible dumping due to the very low invoice value of second hand / used vehicles. Further, conditions of import in line with the CMVR rules have been recommended for compliance by the imported vehicles.

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Section  : Business
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