The automotive parts industry still seems to have been overlooked in the most recent fiscal budget. According to the official budget document, the import of a number of car parts is subject to a hefty customs duty (CD) rate.
The government has set a 35% CD rate on the import of auto parts, according to the specifics. Regardless of how simple or complicated they are, the same rate has been applied to all auto parts.
The following is a list of some of the most typical parts:
- Protective strips
- Luggage compartments
- Interior panels and padding
- Water and air hoses and channels
- Bumper and impact braces
- Spare tires and parts thereof
- Bodywork
- Mounts, clamps, dampeners, and other fitment components
- Engine and transmission assembly
- Suspension and brake components
- Wheels and tires
- Exhaust system
- Electrical components
Taxes on such essential parts are likely to serve as obstacles to price control or reduction for automobiles. The high CD rates are likely to present a significant challenge for the importers of parts.
Read more: Budget 2023-24: Huge Tax Relief on PCs, Laptops, Hardware, and Battery Parts
