Those operating in the tourism sector such as hotels, tour operators and travel agents will no longer be allowed to import high-end motor cars, sports utility vehicles (SUVs) and all purpose vehicles under the zero-duty export promotion capital goods (EPCG) scheme.
Under this scheme, vehicles were imported at substantially lower rate of up to 5 per cent against about 100 per cent impost on general imports. The scheme has been discontinued following allegations of misuse by duty evaders.
“The import of motor cars, SUVs, all-purpose vehicles for hotels, travel agents and tour transport operators and companies owning/operating golf resorts will not be allowed under the new zero-duty EPCG scheme,” said the annual foreign trade policy document.
This may come as a big blow to the tourism sector as the cost of importing vehicles will shoot up significantly.
Last month, CBI said it has unearthed a car scam in Chennai in which the scheme was being misused. CBI had seized about 50 cars in raids across Tamil Nadu. The CBI had raided the residences of several officials and car importer Alex Joseph. The name of DMK’s political heir MK Stalin had also come up for his imported luxury SUV Hummer.
However, hotels, travel agents, tour operators and other businesses operating in the tourism sector will be allowed to import cars and SUVs using served from India scheme after paying duty. However, such vehicles will have to be registered for tourist purposes only within a period of six months.
It has also been decided to add two more ports in the list of designated ports to import cars and vehicles. “Now import of cars/vehicles would also be allowed at ICD Faridabad and Ennore Port (Tamil Nadu),” said the foreign trade policy document.
Source: mydigitalfc.com