We reported when the new Interim Budget 2014 was announced. CLICK HERE to read our earlier story.. With this, excise duty on vehicles have been reduced and the Goverment feels that this step would spell relief to the automobile industry, which is currently going through a lean phase.
Here is a list of changes made to the tax structure for auto industry-
- Excise duty on small cars will come down to 8 percent from 12 percent
- Excise duty on scooters and motorcycles will come down to 8 percent from 12 percent
- Excise duty on commercial vehicles will come down to 8 per cent from 12 percent.
- Excise duty on SUVs will be reduced to 24 percent as against 30 per cent.
- Excise duty on big cars will now be 24 per cent as against 27 per cent earlier
- Excise duty on mid-sized cars will come down to 20 per cent from 24 percent
Responding to the lowered excise duty slab, many manufacturers have already reduced the prices of their models by passing on the benefit to the customers. The latest to announce a price cut is DSK Hyosung, which has lowered the prices of its models by upto INR 20,000.Commenting on the interim budget announcement Mr. Shirish Kulkarni, Chairman, DSK Hyosung said, “We at DSK Hyosung welcome the excise duty reduction announcement, which comes as a great relief to the Automobile Industry that has been reeling under economic slowdown. To that effect we have decided to pass on the benefit of the same to our patrons in the country and are happy to announce a ex-showroom price reduction from Rs. 4,000 – Rs. 20,000 across our entire product portfolio. We are sure this reduction will stimulate the growth in the sector and improve market sentiments.”