Indian Finance minister P Chidambaram has declared an increase in customs on imported luxury vehicles to 100% as compared to 75%.
On the other hand, the custom duty on bikes exceeding 800cc has also been raised from 60% to 75%.
The Budget has also purposed a higher excise duty on some sport utility vehicles (SUVs) to 30% as against 27%, excluding those registered as cabs.
“All this will turn the wealthy people pay additional. Usually, such steps do not crash their spending. However there may be a few arguments about the landed cost of imported vehicles and yachts that have been registered before the financial plan as importers will charge the higher cost,” a car trader in the nation capital, who did not want to be named, stated this.
The move is likely to further boost the attempts of luxury car manufacturers to assemble cars in the domestic market, a process, which commenced in the year 2012 when customs on CBU got increased. This is anticipated to raise costs for vehicles imported as CBUS by well known auto manufacturers comprising BMW, Audi, Volvo, Mercedes-Benz, and JLR.
The financial plan has also broadened concessions for imported components for e-vehicles till the fiscal 2014-15.
Indian finance minister suggested a 10 per cent surcharge for a year on earnings higher than Rs.1 crore, bringing approximately 42,800 high income people, or the super rich, below a higher tax portion.
“I consider there is a little bit of courage of Azim Premji in every rich tax payers and I am positive when I ask moderately wealthy taxpayers to bear a small load for a period of 12 months they will do so in a cheerful manner,” he stated, mentioning the name of the chairman of the software to consumer group Wipro, who had, in recent times, recommended the thought of taxing the wealthy people.
Mr. Chidambaram also levied a related surcharge on local firms boasting proceeds of Rs.10 crore or more.