India has proposed a steep rise of over 180 percent in customs duty in an effort
to discourage free import of used cars once the Quantitative Restrictions have
been lifted from April 1, reports ‘indiaexpress.com’.

"To allay the fears of surge in import of second hand cars, the rate of
basic customs duty on their import will be raised to 105 per cent, which is
three times the peak rate," said Finance Minister Yashwant Sinha in his
budget speech.

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A similar structure of duty for the import of old multi-utility vehicles, scooters
and motorcycles has also been proposed by the Finance Minister.

Quoting Mr Sinha, the internet site reports that in order to boost the commercial
vehicles sector, which is facing a recession, the Finance Minister has proposed
to allow accelerated depreciation on new commercial vehicles for one year at
a rate of 50 percent.

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