VEHICLE IMPORT DUTY REDUCTION

Change of duty levied on spare parts ....results in drop of vehicle imports

    As a result of the introduction of a new permanent tax scheme by the government on spare parts of new and used vehicles imported to the country, there is a drop of prices of vehicles imported, by about one and a half lakhs. The reason for this is that the opportunity to levy charges on spare parts on different vehicles has been covered. Through this scheme levying an extra duty on equipment such as the colour of seats of imported vehicles, leather seats, CDs and DVDs, sunroofs, refrigerators, navigators, reverse cameras, power meters and alloy wheels have been revoked and customs authorities have issued notice that in future a permanent price will be levied on spare parts of vehicles and such a change has already been notified via their websites, well in advance. As such, customers importing vehicles would be able to determine the amount of duty they have to pay when the vehicle is released from port well in time.

    It is said that through this new scheme, customers who were unable to determine the exact tax they had to pay in the case of leather seats etc, because of various taxes being charged in the past would be released from this problem. It is believed that because of the new scheme, the price of vehicles imported would drop by Rs.75000 - 150000.