Union Budget on Automobile: Car-Bike-Cycle is cheaper! Modi government’s surprise in the budget – mssewb.org

Today, the middle class had several expectations around the budget for the financial year 2023-24. Like other sectors, the automobile world was also in the spotlight. However, the finance minister has given some relief to the common people by reducing the prices of cars, bikes and bicycles. Nirmala Sitharaman has announced a significant reduction in import duty without directly reducing prices. In the budget speech on this day, the finance minister announced the reduction of import duty on various items including cars and bicycles. Apart from cars, bikes, smartphones, TVs and many other products are getting cheaper.

In the budget speech, Nirmala Sitharaman said, “Due to simplifying the tax infrastructure, the tax administration system will be improved on the one hand as the burden will be reduced on the other hand. Custom duty is being reduced from 21 percent to 13 percent in all sectors except textiles and agriculture. This will result in little change in the basic custom duty. Toys, bicycles, cars, bikes and naptha will be cheaper.”

Also, keeping in mind the environment-friendly communication system, the topic of electric cars and batteries has come up in this year’s budget. “In order to further accelerate environment-friendly communication system, duty exemption is being extended on imports of goods and machinery required for manufacturing lithium-ion cells used in batteries used in electric vehicles,” the finance minister said.

Exemption from duty on equipment required to set up lithium-ion cell plants will help boost investment returns for the project, according to experts. This will help in making domestic production more competitive.

In the budget today, the finance minister said that new additions have been made to the scrappage policy that was announced for the financial year 2021-22. The finance minister made a big announcement about not only old cars but also old ambulances. States will be helped to scrap old vehicles and ambulances, Seeratharaman said.

The Center had announced the scrapping of 15-year-old cars to boost sales of new cars and get more eco-friendly cars on the road. It was also announced that 9 lakh old Central and State Government vehicles will be scrapped. This work will start from April 2023.

According to the scrappage policy of 2022, the central and state governments offer a 25 percent tax rebate on scrapping old cars and buying new ones. The Center also plans to set up scraping centers within 150 km of all cities in the country.