Date:03/03/2006 URL: http://www.thehindubusinessline.com/2006/03/03/stories/2006030302630300.htm

Back `Customs duty cut on commercial vehicles unwarranted'

Our Bureau

POST-BUDGET EXERCISE: The Chief Economic Advisor, Mr Ashok Lahiri, flanked by the Advisor to the Finance Minister, Mr D. Parthasarathy Shome (left), and the CII Vice-President, Mr R. Seshasayee, at a meeting in the Capital on Thursday. — Ramesh Sharma

New Delhi , March 3

Commercial vehicle makers are keen that the Government review its budget proposal of lowering the customs duty on such vehicles from 15 per cent to 12.5 per cent.

At a post-budget interactive meeting with senior Finance Ministry officials, organised by the Confederation of Indian Industry (CII), it was pointed out that the customs duty rates adopted by certain Asean members stood at about 25 per cent.

The CII members told Mr Parthasarathy Shome, Advisor to the Union Finance Minister, that there was little justification for lowering the customs duty on commercial vehicles when the Asean rates on such items continued to be high.

As part of its attempts to move towards Asean rates of duties, the Finance Minister, Mr P. Chidambaram, had in his budget speech announced a reduction in peak customs duty from 15 per cent to 12.5 per cent.