Bicycle industry seeks removal from central excise net

Battling high input costs, the country's oldest bicycle cluster in Ludhiana today received a jolt, with Union Budget proposing to bring the sector under central excise net.

Union Budget today imposed 1% central excise duty on 130 items which also include bicycle. "The exemption from excise duty on all bicycles and other non-motorised cycles is being withdrawn and a concessional duty at a rate of 1% without CENVAT credit facility is being imposed on such goods," the Budget statement said. Describing the imposition of duty on poor man's mode of transportation as a big blow, the bicycle industry today sought immediate withdrawal of the same in order to save the sector from extinction. "It is totally unacceptable that the bicycle sector be brought under the Central Excise net." said the budget statement.