ACMA lauds vehicle and select auto components excise duty reduction in Interim Budget 2014-15
Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component sector today welcomed the reduction of excise duty on vehicles and select auto components in the Interim Budget 2014-15. Excise Duty on Select Auto Components reduced by 2%. Measures announced to sustain growth and scaling-up of the manufacturing sector, in particular MSMEs were lauded by ACMA.
Congratulating the Union Finance Minister, P Chidambaram, President ACMA, Harish Lakshman, said, “We are glad that the Hon’ble Finance Minister, given the circumstances, has unveiled a pragmatic budget. ACMA welcomes reduction in excise duty on auto components (under Chapter 84 and Chapter 85) from 12% to 10% and on Vehicles – CVs, Small Cars and Two-Wheelers from 12% to 8%; on SUVs from 30% to 24% and on large and mid-sized cars from 27% to 24% and from 24% to 20% respectively. The automotive industry has been reeling under significant pressure for quite sometime now, the announcement on reduction in excise duty is timely and will uplift consumer sentiments, as well as help boost the sagging morale of the automotive sector allowing for capacity creation and employment opportunities. In addition, the reduction in excise duty on capital goods from 12% to 10% will stimulate the industry for higher investments in manufacturing.”
Lakshman further added, “The auto component industry in India aspires to be one with its own design and engineering capabilities, setting up of an exclusive Research Funding Organisation is a step in right direction and will motivate the industry in realising this vision.”