Motorcycle prices are expected to increase by at least Rs.5000 to Rs. 6000 with effect from next week due to the imposition of a new excise duty, traders said.
A spokesman for the Motorcycle and Spare Parts Importers Association said that the Finance Ministry imposed a new excise duty of 25 % on motorcycles which was subsequently reduced by 5 % on an appeal to the Ministry. A Finance Ministry official however said that the combined taxes on motor cycles has come down from the earlier figure as some other taxes have been reduced and that there was no reason to raise prices.
A Senior Manager at Stafford Motor Co. told the Business times that the management has decided to increase the price of motorcycles as there was no considerable reduction in taxes.