The customs duty on
imported luxury goods such as high-end motor vehicles, motorcycles,
yachts and similar vehicles has been increased. In the case of such
motor vehicles, the duty has been increased from 75% to 100%; on
motorcycles with engine capacity of 800 cc or more the duty now will be
75% instead of 60%. Similarly, the duty on yachts and similar vessels
has been increased from 10% to 25%.
On the other hand, to encourage manufacture of environment-friendly
vehicles, Shri P. Chidambaram has extended the period of concession now
available for specified parts of electric and hybrid vehicles up to 31st
Certain concessions have also been extended to the aircraft manufacture,
repair and overhaul industry, which is referred to as the MRO industry.
It is expected that this will lead to generation of more employment and
other benefits. Considering the fact that gold prices have risen
sharply, the Finance Minister has proposed to make amends in the baggage
rules permitting eligible passengers to bring jewellery. He has proposed
to raise the duty free limit to Rs. 50,000 in the case of a male
passenger and Rs. One Lakh in the case of a female passenger. However,
the usual conditions in this regard will continue to apply.