We reported when the new Interim Budget 2014 was announced. CLICK HERE to read our earlier story. With the announcement of the new Interim Budget, the duty on vehicles stand reduced and as per the words of our Hon’ble Fianance Minister, the duties have been lowered “to give relief to the automobile industry, which is registering unprecedented negative growth”.
Following is a list of changes that have baan to the tax structure for car and bike prices in the country-
- 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
Now, responding to the lowered excise duty slab, Honda Motorcycles and Scooters India has announced a price cut for all its models. Here is what a statement from HMSI reads- “Honda welcomes excise duty relief given to auto industry in the Interim Budget 2014. In line with its customer friendly approach, Honda has decided to pass the full benefit of 4% excise duty reduction on two-wheelers to its valued customers across India with immediate effect. Now, all Honda two-wheelers are even more affordable. The price benefit to Honda customer starts from minimum of Rs. 1,600 on Dream Neo and goes upto Rs. 7,600 on CBR 250R.”
We await the response of other bike makers to the lowered excise duty rates.