Narendra Modi set to visit the U.S., the Union Budget has proposed a major cut in customs duties on fully built motorcycles with engine capacities above 1,600cc—from 50% to 30%. This move benefits high-end brands like Harley-Davidson, Ducati, Honda, and Suzuki, making these motorcycles more accessible to Indian buyers.
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The Budget has reduced customs duties not only for large motorcycles with engine capacities above 1,600cc but also for smaller imported bikes, providing relief to buyers of brands like Honda, Suzuki, Ducati, and KTM. Fully assembled motorcycles will now attract a 40% customs duty, down from the previous 50%. For motorcycles with engines of 1,600cc and above, the duty on fully built imports has been slashed from 50% to 30%. Additionally, semi-knocked-down (SKD) units will now be taxed at 20%, a five-percentage-point reduction, while completely knocked-down (CKD) units will face just a 10% duty.
Meanwhile, the headline customs duty on imported cars priced above $40,000 (approximately ₹35 lakh) has been lowered from 125% to 70%. However, with the introduction of a 40% agriculture cess—replacing the previous 10% surcharge—the overall effective duty remains at 110%.
This tariff reduction comes at a time when