The Central government has announced the budget for the financial year 2018-2019. The annual financial plan for the nation this time has been aimed at the populous and less at the industry. There has been no major announcement for the auto industry apart from an increase in the rate of customs.
The rate of customs on specified parts/accessories on both cars and motorcycles has been raised from 7.5 per cent/10 per cent to a flat rate of 15 per cent. Looking to encourage more local sourcing of parts, the government has raised the customs rate on CKD cars and bikes from 10 per cent to 15 per cent. CBUs, which already attract a high rate now see their customs duty rates go up from 20 per cent to 25 per cent.
Finally, the government has announced that the system of toll payments physically by cash at road toll plazas is being fast replaced with Fastags and other electronic payment systems to make road travel seamless. The number of Fastag users has gone up from about 60,000 in December, 2016 to more than 10 lakhs now. From December, 2017 all class ‘‘M’’ and ‘‘N’’ vehicles willare being sold only with the Fastags. The Government will come out with a policy to introduce toll system on ‘‘pay as you use’’ basis.