Bicycle makers have asked the Government to exclude the product from the proposed Goods and Services Tax (GST) and has demanded withdrawal of all current duties, which stands at around 12 per cent.
The President-designate of All India Cycles Manufacturers Association (AICMA), Mr Pankaj Munjal said the industry body has submitted a memorandum to the Finance Ministry and will meet Finance Minister Mr Pranab Mukherjee next week to press for the 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,” Mr Munjal told PTI.
He said India's poor citizens use bicycles as their basic means of doing day-to-day businesses.
At present, cycles attract a total of about 12 per cent duties, including 5-7 per cent local sales tax. “We request the government to withdraw these duties completely in the forthcoming Budget,” Mr Munjal said.