You are here: Home » Budget » News » Auto
Business Standard

Tariff rate on imported commercial vehicles raised to 20%

The move will encourage local manufacturing of the vehicles, says SIAM Director General

Press Trust of India  |  New Delhi 

Arun Jaitley
FM Arun Jaitley entering the parliament to present Budget 2015 (Pics by Sanjay Sharma)

In order to push local manufacturing, Finance Minister Arun Jaitley today increased effective tariff rate on imported commercial vehicles from 10% to 20%, making the import of completely built units expensive.

"Tariff rate on commercial vehicles is increased from 10% to 40% and effective rate from 10% to 20%," he said while presenting the for 2015-16 in the Lok Sabha..

Read our full coverage on Union Budget

Reacting to the proposal, Society of Indian Automobile Manufacturers (SIAM) Director General Vishnu Mathur said the move would encourage local manufacturing of the vehicles.

"We welcome this move of the government to hike tariff duty on commercial vehicles from 10% to 20%. With hike in the tariff rate, import of completely built (CBUs) units of commercial vehicles, would become costly," Society of Indian Automobile Manufacturers (SIAM) Director General Vishnu Mathur told PTI.

This is in line with the 'Make in India' initiative launched by the government and would encourage local manufacturing of commercial vehicles in the country, he added.

When contacted, a Tata Motors spokesperson said: "We do not see any impact on us as we have a completely local production. This move will facilitate the Make in India's efforts."

KPMG India's, Partner, Infrastructure and Government Services, Jaijit Bhattacharya said the tariff rate hike can can potentially be absorbed by truckers as the fuel costs have come down and the competing railways freight charges have gone up.

"However, in the long run, this increase is detrimental to the efficiency in the Indian economy as truckers form an important part of the supply chain," he added.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 28 2015. 15:42 IST
RECOMMENDED FOR YOU