NEW DELHI: Bicycle makers have asked the government to exclude the product from proposed Goods and Services Tax (GST) and has demanded withdrawal of all current duties, which stands at around 12 per cent, to promote the 'common man's' transportation.
The President-designate of All India Cycles Manufacturers Association (AICMA) Pankaj Munjal 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 told PTI.
He said India's poor citizens use bicycles as their basic means of doing day-to-day businesses.
"There are people whose daily income is Rs 100 and own a cycle. It is unfair to tax them. India still have 500 million people who cannot afford a cycle. This fallacy has to be addressed," he said, adding that it is an irony that the government is planning to bring down duties on cars, while the same is not the case with bicycles.
At present, cycles attract a total of about 12 per cent duties, including 5-7 per cent local sales tax.
"We request the government to withdraw these duties completely in the forthcoming
Budget for 2012-13. It will also help in expanding the cycle market that stands at about 15 million units annually now compared to 80 million units in China," Munjal said.
Besides, making the sector duty-free and equalising the freight charges across India, exports of premium cycles can also increase up to $5 billion every year from about $200 million, at present.
Munjal, who is also the Managing Director of Hero Cycles, has been nominated as the President of AICMA.
"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," he commented on his new role. PTI
Source : economictimes.indiatimes.com