India’s Ministry of Finance has increased the customs duty on imported luxury goods, such as high-end motor vehicles, motorcycles, yachts and similar vehicles.
For motor vehicles, the duty has been raised from 75 percent to 100 percent. On motorcycles with engine capacity of 800 cubic centimeters or more, the duty will now be 75 percent instead of 60 percent. Similarly, the duty on yachts and similar vessels has been increased from 10 percent to 25 percent.
However, to encourage the production of environmentally friendly vehicles, Shri P. Chidambaram, India’s minister of finance, has extended the period of concession available for specified parts of electric and hybrid vehicles until March 31, 2015. Certain concessions have also been extended to the aircraft manufacturing, repair and overhaul industry.