Import Duty Hike on Hybrid Vehicles in India

The government told Parliament on June 7, 2011 that it had increased the import duty on hybrid vehicles several months ago without considering the engine capacity.

Education Minister Bandula Gunawardene who presented the proposed amendment on the import duties on hybrid vehicles to the House on June 7, 2011 said the duty was increased without considering the engine capacity of the vehicles and therefore said this had resulted in some revenue losses.

The Minister said the duty would vary according to the engine capacity according to the amendment. Accordingly, he said 50 percent duty would be charged for smaller vehicles while the duty would be 75 percent for vehicles with an engine capacity between 2000 to 3000 cc. A hundred percent duty would be charged for vehicles with an engine capacity exceeding 3000 cc.

The Minister who also referred to the private sector pension scheme charged that the opposition had prevented a great economic benefit for the private sector workers. He said the opposition had prevented the workers from saving a greater percentage of the EPF. He said the workers were saving only 15 percent of their monthly salary in the form of EPF whereas they could have saved 17 percent with the new pension scheme.