Bicycle makers in India have requested the government to exempt the product from the Goods and Services Tax (GST) proposed recently, The Hindu Business Line reports. They have also demanded a withdrawal of all present duties in the upcoming Budget. The current duties on bicycles stand at about 12%, of which five percent to seven percent is local sales tax.
Pankaj Munjal, President-designate, All India Cycles Manufacturers Association (AICMA), stated that the body has submitted a memorandum to the Finance Ministry. Representatives will meet Finance Minister Mr Pranab Mukherjee next week to discuss their demands.
‘Bicycle is common man's transportation and it is a basic necessity for them. We should not tax them. Cycle should not be included in the GST,’ Munjal stated. He also stated that a number of poor citizens in India use bicycles to earn their daily bread.