Union Budget 2025: Customs duty for fully built 1,600cc bikes cut to 30%, ET Auto
The Budget reduced customs duty on imported motorcycles and cars. Bikes with engines over 1,600cc face a 30% duty, down from 50%, while smaller bikes now have a 40% duty. Imported cars over $40,000 have a 70% duty instead of 125%, but a new 40% agriculture cess keeps the cumulative duty at 110%.
The Budget slashed customs duty not just for big motorcycles with engines above 1,600cc, but even in case of smaller ones, offering relief to those buying imported Honda, Suzuki, Ducati and KTMs.
The fully built units will now face 40% customs duty instead of 50% earlier.
For 1,600cc motorcycles and above, customs duty was cut from 50% to 30% for fully built imported bikes and by five percentage points for those being shipped in semi-knocked-down kits (now 20%), and completely knocked down (10%).
Headline customs duty on imported cars costing upwards of USD 40,000 (around INR 35 lakh) was cut from 125% to 70%. But with an agriculture cess of 40%, instead of the earlier 10% surcharge, the cumulative duty remains 110%.
- Published On Feb 2, 2025 at 10:59 AM IST
