Dreaming of a Superbike : Basic customs duty on import of motorcycles, including CBU, SKD and CKD units, was also reduced by the government in the Union Budget.2025 Budget: Increase affordability of big bikesThe duty on CBUs for motorcycles with engine capacity upto 1,600cc has been reduced from 50 percent to 40 percent. 050 per unit will be charged for SKD units as duty against the previous
250000 per unit, while import on CKD units have also been reduced by 5 percent from 15 percent.For big bikes with engine capacity beyond 1,600cc, the duty cut on CBUs is more aggressive: from 50 percent down to 30 percent. The duty on the SKD units will be reduced from 25 percent to 20 percent and those of the CKD units will come down from 15 percent to 10 percent.
While the basic customs duty in respect of import of cars and other motor vehicles has also been slashed, though, it isn’t yet clear if the effective duty rates applicable to them would change. The reason for this is that the budget document indicates an insertion of the Agriculture Infrastructure and Development Cess (AIDC) components in these vehicles. AIDC was first mentioned in the Union Budget a few years ago to strengthen the agricultural infrastructure. I think from the customs standpoint initially, they had applied AIDC to goods like gold, silver, alcoholic beverages, crude palm oil etc.
This duty-lowering will, of course, impact the price of such motorcycles in India, which has seen a shift toward premium models in recent years.The motorcycle duty reduction comes as Donald Trump is president of the United States again. Years back, Trump the referenced Harley-Davidson motorcycles to criticise India over high tariffs.