Indian Government Proposes Duty Cut for Harley-Davidson Bikes

Indian Government Proposes Duty Cut for Harley-Davidson Bikes: According to the latest reports, the Indian government has proposed a new tariff classification for the motorcycles that are equipped with an engine capacity exceeding 1600cc. The motorcycles will be taxed with single digits only which is great for the Harley-Davidson enthusiasts in the Indian market. The decision is a part of a plan of the trade talks that have been going strong with the US government.

At present, India classifies motorcycles as per these engine capacities – 75cc, 250cc, 500cc and 800cc or above. As per the proposal, a new category of 1600cc and above will be created. The duty on the Completely Built Units (CBUs) was reduced by the Indian government from 100% to 50% back in February 2018 while the Harley-Davidson motorcycles have always been a topic of conflict between the two countries.

Since Donald Trump, the President of the United States is expected to visit India soon, the Indian government has officially proposed a duty relief on the Harley-Davidson motorcycles thus offering a polite solution to the latest criticism received on the heavy taxes imposed on the American motorcycle brand.

Commenting on the new decision, an official stated – “The issue of Harley-Davidson is already resolved. We will reduce the duty on the bikes above 1,600cc to a single digit”. He further added that the Indian government will be creating a new HS code for the Harley-Davidson bikes.

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