No Changes in Tax Slab on Imported European Cars

After strong reaction from SIAM (Society of Indian Automobile Manufacturers) and Japanese Carmakers, the government decided not to cut import duties on European brand cars. On EU demands for cut in import duty on its cars, Praful Patel, Heavy Industries and Public Enterprises Minister pitched for continuation of the current tax slab on imported vehicles from European nations.

"We want cars to be manufactured in India so there is industrial progress and employment generation in the country. But we also think that the current tax on imported cars from EU should continue," he told reporters on the sidelines of 4th Clean Energy Ministerial meet here.

The European brands under Free Trade Agreement (FTA), want the Indian government to reduce or even eliminate import duties on their vehicles, specially the high-end passenger cars. On the other hand, the Indian industry has cautioned against providing any such allowances arguing that such step will effect the future investments.

Few days back, Society of Indian Automobile Manufacturers (SIAM) has opposed the proposal made by free trade negotiations between India and EU about the custom duties on fully imported cars and engines to be lowered. The SIAM wants all the list of tariff lines, consisting CBUs and engines, should be kept in Negative list in all FTAs.

Source: ET