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View Poll Results: ROOF-TOP HIGH Custom duties is it fair?? - What is the perfect duty structure??
100% - The govt should suck more green out the richi-richs 1 7.14%
75% 0 0%
50% 2 14.29%
25% 5 35.71%
Almost 0%, Since it aint using the money for any good 4 28.57%
May be, depending on the segment mark duties 2 14.29%
Voters: 14. You may not vote on this poll

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Old 2nd March 2004, 14:21   #1
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Hi, I have been debating this for a very long time..I know what duties are used for, but I dont see it happening in India for any good infrastructure use...all the infrastructure that is being made is of bigger and better houses for the MPs, MLAs etc..

I would like to see the duties come down to a much more acceptable limit and for me anything less than 50% is still kind of acceptable..I know we are doing much better than before but still I was assuming by the year 05 we should be practically at the WTO std, but we are no where close..

Reducing duty also generates more revenue for the govt since the higher seg cars come in a lower seg and then sales figure go higher...atleast this is what i feel..I would like to know what you guys think about this...

cheers
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Old 2nd March 2004, 15:52   #2
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The govt can keep some duty if they want but I wouldnt mind if there werent any duty at all since anyways we dont know where the money goes . Apart from that the country would get to see better cars as well.

Cheers
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Old 2nd March 2004, 16:58   #3
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C4S,

The purpose of imposing import duties on cars (apart from other things) is not really to contribute to the infrastructure of the country. A single medium length flyover costs a couple of crores, and you would need the duty from atleast 50 ferraris to finance that flyover.

The main purpose of import duties is to protect local industries. Manufacturers who come to India, set up a manufacturing facility here, source raw materials locally, employ more than 500 people and pay their taxes have more of a right to the local market than "outsiders" do (free economy be damned...even outsourcing has become a bad word now). If the import duties were to come down to zero, what incentive would anyone have to assemble or build cars in India...when a car like the Honda Accord which sells 4,00,000 units per year in the states sells merely 1,800 per year in India?

Import duties are implemented only to dissuade the locals from buying foreign goods and stick to locally made goods.

Thats precisely the reason why import duties MUST stay in India. Probably they can get them down from the currently astronomical 100 %.

GTO
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Old 2nd March 2004, 17:00   #4
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The government should maintain a high percentage of duty. If you pass through Mahim junction, Mumbai every morning and evening you'll agree with me that our roads and traffic authorities are just not capable of handling too many vehicles. The government should be strict while collecting duties and taxes. The rich should pay proportionately. All the taxes collected should be used to improve the condition of our roads. Just cutting duties is not going to help us in any way.
It's just very sad that the government is so corrupt.
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Old 2nd March 2004, 17:05   #5
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Improving roads is high priority but sadly nothing is being done for the same. If they charge so much duty they should also looks towards infrastructure and not just protect local industries.. And please dont do favours to people like... u know who....

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Old 2nd March 2004, 22:28   #6
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50 percent duty will be right, i guess. for exotics there shudnt be duty .
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Old 3rd March 2004, 01:33   #7
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Hahaha V12 I'm with you on the duty for exotics thing

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Old 28th March 2004, 23:57   #8
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The rate should be brought down to about 40-50%.In any case people with the connections get these cars without paying much duty as there are certain car dealers who manage to"bend the regulations".
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Old 29th March 2004, 13:55   #9
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Duty on imported cars are the roughly the same all over. And yes the indian market is being protected. But in case of exotic cars wich are not available here, which market is it protecting. And why charge duty on secondhand cars? That at least should be reduced to below 50%.
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Old 29th March 2004, 17:17   #10
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The logic behind charging duty for 2nd hand cars is that if u dont charge duty then there'll be too many 2nd hand cars from abroad.....in other words it'd b a dumpyard for 2nd hand cars...again that hurts the local industry...

M3
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Old 29th March 2004, 23:37   #11
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The reason behind a higher duty on nd hand imported car is dumping which will cripple the Indian Automobile industry. Its bcos of these duties that the indian auto industry is developing. we are getting better and better cars.

BTW , whats the import duty on spares, any idea?? Do they charge duties on wheels, tyres, accessories??
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