AMCA demands 8% flat duty

Automotive Component Manufacturers' Association (ACMA) has demanded across the board excise duty structure of 8 per cent for all small cars, two wheelers and auto components for a more competitive Indian market and to achieve the aim of double market size in the next decade.

The Indian automobile market is poised to go beyond $15 billion by 2015 from current level of $9.8 billion as per the priorities laid down in the 10-year Auto Mission Plan.

ACMA has demanded continuation of the present process of fiscal reforms and promotion policy to achieve that market size.

It has also asked that the present tax system should be transformed into a special incentive structure on the pattern of Thailand "" concessions in corporate income tax, custom duty exemptions on imported machinery and raw materials, special duties for special economic zones (SEZ) units "" and need to make rational changes keeping in view the competitive economies.

Vishnu Mathur, executive director, ACMA said: "There has been a steady growth of 20 per cent in automotive sector in the past five years. But to maintain it, the momentum of corrective fiscal measures, with right excise duty concessions, are required for the industry. The huge investments already made should be guided by right government policies with the aim of making India one of the top seven global automotive markets by next decade."

According to Society of Indian Automobile Manufacturers', over Rs 61,000 crore investments have already been committed in the Indian automotive sector for capacity expansions, product development, greenfield projects and R&D for the next three years.