Bicycle makers demand withdrawl of taxes on cycles
Bicycle makers have demanded the government should debar the products and withdraw all the levied duties from the suggested Goods and Services Tax (GST), which is around 12 per cent.
Pankaj Munjal, President-designate of All India Cycles Manufacturers Association (AICMA)said the industry body has submitted a memorandum to the Finance Ministry and will meet Finance Minister Pranab Mukherjee next week to press for the demands.
"Bicycle is common man’s transportation and it is a basic necessity for them. We should not tax them. Cycle should not be included in the GST," Munjal said. Currently cycles attract total 12 percent duties, including 5-7 percent local sales tax.
There are around 500 million people who can not afford to buy cycles. Poor peolpe whose daily income are Rs 100, own bicycles, and it would be prenominal to tax them.
However, after withdrawing duties and equalising the freight charges, export of cycles will increase up to USD 5 billion each year from about USD 200 million. Munjal also said that if the government make cycles duty free in the forthcoming Budget for the year 2012-13, it will help in expanding the cycle market at about 15 million units annually now compared to 80 milion units in China.
Munjal has been nominated as the President of AICMA and commented on his new role, "Since its inception in 1984, AICMA has been instrumental in bringing in lot of positive changes for the India bicycle industry. As president my endeavour will be to bring about sustained growth of the bicycle industry both in domestic as well as in export sectors".