Amazing things can be done if you lobby right.
The cycle component manufacturers in Ludhiana are inefficient in their manufacturing capabilities. Add to that we must have kept everything in the ‘small scale sector’ to ‘help’ the poor guys. However these ‘poor’ guys can lobby well even if they cannot make good quality products at cheap prices. So they lobbied hard.
Cycles which these guys cannot (or are not interested in making) make, but the Chinese guys can make have got expensive. A Chinese bicycle which was taxed at an import duty of 10%, will now be taxed at 30%. Not bad, just a 200% backdoor support for these guys.
Solution 1: Read the budget carefully, you are now allowed to import PERSONAL goods FREE of duty up to Rs. 35,000. So if a friend is coming from Sing, KL, Vietnam (Dubai is expensive) ask him/her to tug it along. At 15kg you will not pay too much as freight.
Solution 2: You may be able to buy it ONLINE from the manufacturer (Cannondale, Trek, Giant are you listening?) and ship it to you at Mumbai as long as you declare that it is for personal use (so no duty). Some enterprising sports shop owner will soon do it. Watch this space….:-)
PS: I have shares of Tube Investment which is launching luxury cycles soon. TI will benefit from this change in duty structure.
Note: did you see my change in language? Vested interest creates change in tone 🙂 LOL LOL….about a 100 times!!
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