16% auto parts cess irks chamber

The Punjab Scooter Parts Traders and Manufacturers Association today resented the 16.32 per cent excise duty imposed on suppliers and packers of automobile components.

The finance ministry from June 1 has imposed this duty after it classified the suppliers and packers of automobile parts as deemed manufacturers.

Members said the excise duty is highly unjustified because suppliers are allowed via media to sell the products manufactured by tiny units.

Speaking to Business Standard, Sunil Parbhakar, Chairman of Punjab Scooter Parts Traders and Manufacturers Association said the small units in north India, which are not covered under excise, manufacture most of the items manufactured in north India.

"All small manufacturers receive the raw material, tools and lubricants inclusive of the excise duty and again charging the packers on the items which they procure from tiny manufacturers would result in double duty."

"We have written to the Finance Minister to waive off this excise duty as in the current scenario, two and three wheelers are no more luxury but a necessity. Imposing excise duty of 16.32 per cent on MRP will result in increase in prices, which can create burden on public.