New Delhi, Feb. 20 The Heavy Industries Ministry has asked the Finance Minister, Mr Pranab Mukherjee, to impose 10 per cent Customs duty on auto components in the forthcoming Budget. This has also been the demand of domestic producers in the backdrop of increased shipments from China.
“We have already suggested to the Finance Minister a 10 per cent customs duty on any imports (of auto components) so far as the auto industry is concerned,” the Heavy Industries and Public Enterprises Minister, Mr Vilasrao Deshmukh, said on the sidelines of National Manufacturing Summit here.
When contacted, Mr Jayant Davar, President of Automotive Component Manufacturers Association of India (ACMA), said his association has asked the Government to impose a blanket 10 per cent customs duty across all auto components.
“At present, some components which could have a generic use like engine parts (also used for generators) attract customs duty of 7.5 per cent. To protect the domestic industry from cheap imports, we want a 10 per cent duty on all components, regardless of the final use.”
Source : Business Line