Bicycle makers seek tax exemption | SupportBiz

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Bicycle makers seek tax exemption

 
Memorandum submitted to the finance ministry, asking for a removal of all duties.

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.