The government has declared the union budget for this financial year. This time budget is more destined towards the populous rather than less towards the industry. There is nothing much has been updated concerning the auto industry except an increase in the expected customs rates.
The customs rates on particular sections and products concerning both the motorcycle and cars have been increased from existing 7.5%- 10% to a flat rate of 15%. Paying attention to promote more local sourcing of different parts used in vehicles, the centre government has increased the rates of customs on CKD bikes and cars from existing 10% to 15%. The completely built units or CBUs are put under high rate from now to enhance indigenous products and rate goes up from 20% to 25%.
Lastly, the centre government has declared that the structure of toll system and payment through physical or cash at road toll plaza are being quick fixed with placing Fastags and some other electronic payment options to create the road travel quicker. Coming to the number, now the users of Fastags has just increased about 60,000 to more than 10 lakhs till December 2016. From the date, December 2017 all class naming ‘‘M’’ and ‘‘N’’ vehicles are proposed to sold only with this Fastags modes. The government also put efforts to sort out the hurdles by putting policies to make toll system on ‘‘pay as you use’’ basis.