Duty on European cars to be cut; but with import quota

Discussion in 'Economy & Infrastructure' started by sehwag1830, Jan 4, 2012.

  1. sehwag1830

    sehwag1830 Tihar Jail Banned

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    India may slash duties on import of luxury cars from European Union under the proposed free trade agreement, but with a quantitative restriction on the number of vehicles to be shipped in, sources said.

    The option is being considered by the Commerce Ministry as a compromise between protecting the interest of the domestic automobile industry and the hard bargain being sought by the the 27-nation bloc for the much-delayed FTA to conclude, they said.

    Under the FTA, officially known as Bilateral Trade and Investment Agreement (BTIA), the EU has sought substantial reduction or even elimination of duties in export of its automobiles,particularly the high-end passenger cars, to India.

    Duty on European cars to be cut; but with import quota - The Economic Times
     
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Lot of goodies in shelf for both India & EU once FTA gets full fledged approval.
     
  4. The Messiah

    The Messiah Bow Before Me! Elite Member

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    Ive been hearing this nonsense for many years now.

    Prices of european cars increase every year rather than decrease...we Indian consumers are the biggest idiots. We pay nearly double than others....what we pay for honda civic would get us a bmw in west.
     
  5. trackwhack

    trackwhack Tihar Jail Banned

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    Civic is a bad example because the Civic is made in India and the Indian Civic is actually way more chic that what you get here. Here the Civic is a plastic bucket. Anyway, the cheapest Bimmer has a sticker price of 35K USD. Add insurance and Tax, you are gonna shell out more than 40K. Thats way more expensive than a Civic. :)

    Indians shell out double the price for only imported of CBU cars.
     
  6. The Messiah

    The Messiah Bow Before Me! Elite Member

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    We shell out a lot and most cars dont even have the full features.

    See the chevrolet cruze in India and in usa. merc c-class sports cost 35k in usa which makes it 17 lakhs in India but it sold for around 30 lakhs. honda accord in usa is 20k which makes it 10 lakhs but its sold for around 20 lakhs. Daylight robbery!
     
  7. trackwhack

    trackwhack Tihar Jail Banned

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    I am not disagreeing. The point being both the Merc C class and the Accord, a lot of parts come in as imports and hence duty. For cars that are built from scratch in India, you will see the price is very competitive and Civic is a good example. A Civic with similar specs to the top end Indian Civic costs 22K sticker price here.

    2012 Honda Civic Sedan - Options and Pricing - Official Honda Website
     
  8. Blackwater

    Blackwater Veteran Member Veteran Member

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    Whats the use ,we in EU still have to pay lot of duty or taxes on car.
     
  9. The Messiah

    The Messiah Bow Before Me! Elite Member

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    But many of them have factories in India except for luxury cars.
     
  10. trackwhack

    trackwhack Tihar Jail Banned

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    If they cant sell big volumes, they would rather import parts and assemble. When the country starts buying more expensive cars in bigger numbers, they will start making it here because competition will do the same to get a price advantage. Its just a matter of time. I'd say about 6 - 8 years before the duty regime completely collapses.
     
  11. pmaitra

    pmaitra Moderator Moderator

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    I would like a blanket tax on all privately owned vehicles as such:

    When you buy a car, you'll have three main taxes to pay. One is an Acquisition Tax, another is a Weight Tax, and the third is an Annual Tax every May. The first two you pay when you buy the car. Basically, the bigger the engine, the more you pay. The Acquisition Tax is around 5% of the price of the car. The weight tax for cars with engine sizes up to 2 litres are about 56,700 yen, greater than that is 75,600. Passenger cars with a 300 something or 33 in the upper right corner of the license plate (including nearly all US cars) are the highest. A 50-something on the license plate indicates a medium-size car, and the "Kei" cars with an engine of 660cc have a yellow plate and are lowest. The May annual tax for Kei cars is the lowest as well at about 5000-yen, but for larger cars the tax quickly escalates to 34,500-39,500 yen for medium cars to 45,000 yen for 2.5 litre cars and 56,000 yen for 3 litre cars. You also need to pay consumption tax when you buy fuel, and many petrol stations don't display their prices. Prices can vary and may be up to 15 yen/ltr. cheaper at some stations, a big difference.
    Source: Buying a Car in Japan

    “Other Taxes” columns include 0.25-cpg inspection tax. Excise tax consists of a 17.5 cpg flat rate plus a variable wholesale price component or 7% of the average wholesale price of motor fuel during the preceeding 6-month base period. The variable wholesale component is 25 cents per gallon.

    Source: Gasoline tax information - North Carolina Gas Prices
     

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