The Union Budget has dampened the spirits of electronic bike (E-Bike) manufacturers as the government has left the issues of excise duty on such bikes and import duty on battery untouched.
The E-Bike manufacturers had sought from Union Finance Minister to exempt excise duty on E-Bike and reduce import duty on battery, which is a key input for a bike.
Upset over not acceding to the request of the industry, Onkar Singh Pahwa Managing Director of Avon Cycles -- a e-bike manufacturer-- said it is beyond his cognizance that "why Finance Minister ignored the common man's dream of owning an affordable battery-powered two-wheeler while battery-powered car is given exemption from whole of excise duty."
The electric two wheelers in particular continue to attract 8 per cent excise duty "which is social injustice of the cruelest kind," he remarked.
Current taxation on E-Bike and its parts makes its ownership prohibitive for the average aspirant in this segment, he said therefore, these be fully exempted, as in the case of electric car, he said.
Echoing similar views, Hero Cycles, which is also a big player in this segment, expressed surprise over not touching the demands of E-Bike industry in the Budget. "The government should have reduced the import duty on battery which constitutes almost 25 to 27 per cent of the cost," Hero Exports (part of Hero Cycles) Senior Vice President Ashok Abrol said.
Several players, including Yo bikes, Hero Electric, Avon Cycles have ventured into this segment which is still at nascent stage
http://sify.com/finance/fullstory.php?id=14614144
The E-Bike manufacturers had sought from Union Finance Minister to exempt excise duty on E-Bike and reduce import duty on battery, which is a key input for a bike.
Upset over not acceding to the request of the industry, Onkar Singh Pahwa Managing Director of Avon Cycles -- a e-bike manufacturer-- said it is beyond his cognizance that "why Finance Minister ignored the common man's dream of owning an affordable battery-powered two-wheeler while battery-powered car is given exemption from whole of excise duty."
The electric two wheelers in particular continue to attract 8 per cent excise duty "which is social injustice of the cruelest kind," he remarked.
Current taxation on E-Bike and its parts makes its ownership prohibitive for the average aspirant in this segment, he said therefore, these be fully exempted, as in the case of electric car, he said.
Echoing similar views, Hero Cycles, which is also a big player in this segment, expressed surprise over not touching the demands of E-Bike industry in the Budget. "The government should have reduced the import duty on battery which constitutes almost 25 to 27 per cent of the cost," Hero Exports (part of Hero Cycles) Senior Vice President Ashok Abrol said.
Several players, including Yo bikes, Hero Electric, Avon Cycles have ventured into this segment which is still at nascent stage
http://sify.com/finance/fullstory.php?id=14614144
