Import duties on bikes revised, CBUs to cost less


The Government of India has revised the import duties on motorcycles in completely knocked down (CKD) form as well as completely built-up units (CBU).

Rates for the CKD bikes with all the necessary parts have increased from 10% to 15%, while those with un-mounted preassembled engine, gearbox and transmission have gone down to 25% from the earlier 30% slab. CBU category slabs have got a steep reduction. Previously, they were taxed at 60% and 75% for bikes with engine capacity lesser than and greater than 800cc respectively. The new slabs now have a flat 50% slab for all CBU bikes with any engine size.

The move should see a drop in the prices of some high-end bikes from manufacturers like Harley Davidson, Ducati, Indian, Triumph, etc. The bikes with local assembly will see a slight increase as most of the manufacturers have started their local assembling.

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