Finance Minister Nirmala Sitharaman announced the Union Budget 2021 in the Parliament. The Minister announced that customs duty on certain types of automobile parts will be increased to 15 percent. This will increase the prices of several vehicles as well as some of their spare parts. This is the third time that customs duty on automobile parts has been increased. Union Budget 2021: Vehicle Scrappage Policy Announced By Finance Minister Nirmala Sitharaman.
"Our customs duty policy should have the twin objective of promoting domestic manufacturing and helping India get onto the global value chain and export better. The thrust now has to be on easy access to raw materials and exports of value-added products. We are raising customs duty on certain auto parts to 15 percent to bring them on par with the general rate on auto parts", Sitharaman said in her budget speech.
In 2020, customs duty on imported vehicles was also increased along with several automobile parts. The auto industry is already worried that sales have fallen due to the COVID-19 pandemic. Sitharaman proposed to hike customs duty on specific auto parts like ignition wiring sets, safety glass, parts of electrical lightning, windscreen wipers, instrumental panel clocks, clocks, defrosters and demisters.
(The above story first appeared on LatestLY on Feb 01, 2021 03:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).