The Government Of India’s Union Budget 2012—13 see’s amendments that hike two-wheeler excise duty from 10% to 12%. This in turn increases the manufacturers overhead  costs and they are left with no choice but to pass it on to the customers. One would expect some relief in other areas to balance the hike, but there are no such move’s, nor do we see any reduction in the import duties on completely built units (CBU), semi knocked down (SKD) and completely knocked down units (CKD), and add to that no mention on the taking control of sky high petrol prices its a definite not so good a budget for the enthusiast.


  1. Correct me if I am wrong: This means that the CBU, SKD, CKD duties remain the same. The only burden we will be expected to bear is the increase in excise duty from 10 to 12 %… right?

    • Not entirely .
      You see everything works as cumulative burden – so if excise goes up then CKD will go up and SKD will go up. Duties will go not directly go up but since DUTY is charged and then Countervailing Duty plus this cess and that cess on the charged amount – everywhere that there is a SERVICE ; you will see a price hike cumulatively and aggregate down the line. So – clearing and forwarding; Handling ; Octroi processing etc will all add the additional service tax to the bill and then on top are we charged basic duty + CVD + Cess + Cess + etc. Also, another key issue is the fact that Maharashtra govt is raising road tax – so registration and Insurance because of additional tax on that too goes up . The Finance ministry should have at least had the sense to reduce Basic or CVD by 20% this budget . Its really sickening and disgusting how much we are taxed on vehicles imported – SPECIALLY THE ONES THAT INDIAN MANUFACTURERS WILL NEVER BUILD HERE . Its disgusting protectionism at its worst . this is all engineered by the Bureaucrats and Babus bought off by the Manufactures like Hero Honda ; Bajaj ; Enfield ; TVS – who don’t want foreign bikes here.


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