Dispute among the Car companies over import duty

Pawan-GoenkaThe upcoming trade agreement between India-EU has created a spat between car makers and Pawan Goenka who is the president of industry body Society of Indian Automobile Manufacturers (Siam). This agreement has been opposing several progresses so as to cut duty on imported cars.

On the other hand several members, along with the foreign luxury carmakers such as Audi, Mercedes and BMW are batting for lower tariffs.

Recently, a protectionist note has been given by Siam. It opposes the move which is not favour to remove car imports from the negative list. It is hoped that there would be a gradual lowering of duty from the current level of 60%, which is at present around 110% including the addition of counter-vailing duty (CVD), VAT and other local levies.

Moreover, the industry ingress has also made a strong field to the commerce department against the lowering of duty. It has also said that it could see a way of manufacturing investments from India and it has harmful affects to the domestic players. It might damage the employment as well.