CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Indian Bike Makers Seek Backing Amid Chinese 'Dumping'

Indian Bike Makers Seek Backing Amid Chinese 'Dumping'

by Mary Swire, Tax-News.com, Hong Kong

21 March 2014


Indian business association ASSOCHAM has called on the Punjab Government to support the local bicycle manufacturing industry with a lower rate of value-added tax (VAT) to help it to compete with Chinese manufacturers.

India is the world's second largest bicycle producer after China, accounting for about 10 percent of global bicycle production. With an estimated market share of USD1.5bn, the Indian bicycle industry produces about 15 million finished bicycles annually.

The call for tax support comes after a significant increase in the value of imported bike components from China. ASSOCHAM has alleged that there is a need to impose strict anti-dumping laws to keep in check rising cheap Chinese imports of bicycles and components.

The plea for a lower VAT rate has been supported by a study from the ASSOCHAM Economic Research Bureau, entitled Future of Indian Bicycle Industry.

Commenting upon the release of the research, the Secretary General of ASSOCHAM, D S Rawat, said: "The imports of bicycles and their components from China to India have risen by about 41 percent during the course of past five years, as such it is imperative for India to review the Free Trade Agreement and South Asia Free Trade Agreement to safeguard the interests of the domestic bicycle industry."

ASSOCHAM said that Indian exports had grown at an annual growth rate of 17 percent, compared with a 35 percent rate in growth for imports, which it claimed is on account of dumping from Chinese importers.

On behalf of the bicycle manufacturers, ASSOCHAM has urged the government of Indian province Punjab to reduce the value added tax (VAT) on bicycle components, which is currently 5.5 percent. "There is also the need to release VAT refund of bicycle manufacturers lying with the Excise and Taxation Department of Punjab government so that the money be utilized by manufacturers to push production," it said.

It noted also that high interest rates, above 10 percent, on smaller bicycle manufacturers are cramping productivity, in particular in the city of Ludhiana, in Punjab, where 90 percent of production occurs.

TAGS: tax | business | value added tax (VAT) | India | interest | law | accounting | anti-dumping | China | manufacturing | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »