Budget: Customs duty on imported luxury goods increased
New Delhi, Feb 28 : Customs duty on imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vehicles has been increased in the Union Budget 2013-14.
In the case of such motor vehicles, the duty has been increased from 75% to 100%; on motorcycles with engine capacity of 800 cc or more the duty now will be 75% instead of 60%. Similarly, the duty on yachts and similar vessels has been increased from 10% to 25%.
On the other hand, to encourage manufacture of environment-friendly vehicles, Union Finance Minister P. Chidambaram has extended the period of concession now available for specified parts of electric and hybrid vehicles up to 31st March 2015.
Certain concessions have also been extended to the aircraft manufacture, repair and overhaul industry, which is referred to as the MRO industry.
It is expected that this will lead to generation of more employment and other benefits.
Considering the fact that gold prices have risen sharply, the Finance Minister has proposed to make amends in the baggage rules permitting eligible passengers to bring jewellery.
He has proposed to raise the duty free limit to Rs. 50,000 in the case of a male passenger and Rs. One Lakh in the case of a female passenger. However, the usual conditions in this regard will continue to apply.