Hyderabad: Biking enthusiasts in the city can look forward to owing their dream machines, including the legendary Harley Davidson or the Indian Motorcycle, as acquiring one has become a bit more affordable.
The Central government’s recent decision to slash customs duty to 50 per cent of the bike’s price, from the existing 60 per cent and 75 per cent, is likely to have a cascading effect on the prices of high end imported bikes, according to dealers in Hyderabad.
Earlier, imported motorcycles with an engine capacity of 800cc or less used to attract a customs duty of 60 per cent on the price of the bike, while for those with a capacity of 800cc or more, it was 75 per cent.
Now, the Central Board of Excise and Customs (CBEC) has slashed the duty on both these variants of motorcycles, which are imported as completely built units (CBU), to 50 per cent.
The completely built unit means a bike or automobile which is imported from another country as a complete fully assembled unit and does not require any kind of assembling before being sold. Most of the imported bikes come as CBUs.
Dealers of popular imported bikes in the city such as Harley Davidson and Indian Motorcycles are now in the process of revising the prices.
K Naga Aditya Kumar, General Manager of Harley Davidson in Banjara Hills, said it was a welcome move from the government as the prices of imported high end bikes would come down by Rs 50,000 and for some models, even by Rs.1 lakh.
“The new tax will be applicable from March. The prices on Harley Davidson’s touring bikes such as Road Glide, Street Glide and Road King, which are CBUs imported from United States of America, might change. Nearly 50 CBU motorcycles have been sold in the last two years,” said Kumar.
According to officials at Indian Motorcycles, the price, vehicle tax, ex-showroom price, road tax and insurance were likely to come down since most of the Indian Motorcycle products were CBU variants. VE Sunder Rajan, General Manager of Indian Motorcycle, Jubilee Hills, said ultimately, customers would benefit with the rationalisation of prices on motorcycles. The new prices were yet to be decided, he added.
CBU apart, import duty on engine, gearbox, or transmission mechanism as a completely knocked down (CKD) kit in the pre-assembled form of motorcycles, not mounted on a body assembly, has also been reduced to 25 per cent. These pre-assembled parts attracted customs duty of 30 per cent earlier.
Go ahead, make your day
The existing prices of some of the variants which are likely to come down