We reported in detail when the details on the Interim Budget 2014 came out. CLICK HERE to read our earlier story.
Finance Minister P Chidambaram has reduced the excise duty in the interim Budget. “To give relief to the automobile industry, which is registering unprecedented negative growth, I propose to reduce excise duty,” he said.
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.
The excise duty cut proposed in the interim budget will be applicable only up to June 20, 2014.
Now, Mr. Piyush Munot, Managing Director, ZF India has shared his views on the Interim Budgen 2014. Here is what he says- “The budget will help to boost the sagging morale of the Auto Industry., specially the SUV manufacturers. It’s a very good move for the industry, which has been struggling in the recent past. The reduction in Excise Duty would lower the acquisition price thereby making vehicles more affordable. The automotive industry is the backbone of growth for the manufacturing sector, so it’s revival would support key industries like auto components, capital goods, raw materials, electronics, chemicals, plastics, and software. Revived growth in the automotive industry would have a positive impact on these key downstream and upstream manufacturing sectors.”