Changes in duty, CC slabs on imported cars proposed

The government in its budget proposals for FY2014-15 has proposed some changes in duty along with reorganising CC slabs on imported cars.
According to the proposals, it proposed to unify the existing two slabs of 1,501 to 1,750 CC and 1,751 to 2,000 CC motor cars into one slab of 1,501 to 2,000 CC and fix 100 per cent SD thereon while maintaining the other duties and taxes unchanged.
Likewise, the existing 250 per cent SD applicable on motor cars falling between 2,001 to 2,750 CC is proposed to be reduced to 200 per cent. The existing year-wise depreciation system will continue.
In the budget, it has also been proposed that the facility given to 1500 to 2500 CC new hybrid vehicles should be limited. "In the budget for FY 2014-15, I propose imposition of 60 percent SD on new hybrid cars from 1,500 to 2,500 CC which will encourage importation of more quality and environment-friendly vehicles yielding more revenue, " Finance Minister AMA Muhith said.
It is also proposed to increase duties of CKD motor jeeps having cylinder capacity above 2,000 CC to 60 per cent from existing 45 per cent.
Besides, the proposed budget also said low rates of SD have encouraged significant increase in import of microbus and double cabin pickups which require some control. In consideration of this, it has proposed to raise SD rates from 30 per cent to 45 per cent on microbuses of 1501 CC to 1,800 CC engine capacity, while 60 per cent SD rates on 1,801 to 2,000 CC microbuses to remain unchanged. Thirty per cent SD has been proposed on motor vehicles falling under HS code 8702.10.40 with seating capacity not exceeding 15 persons.
Moreover, present 30 and 45 per cent SD rates on double cabin pickup up to 1,500 CC and from 1501 to 2750 CC have been proposed to be raised to 45 and 60 per cent respectively.