Thinking about a new car or bike purchase? You might have to spend some more if you happen to do that post the 1st of July, as the excise duty cut on vehicles announced by the previous government, to help a struggling industry, is expiring on the 30th of June.
The next general budget will be announced sometime in July and if the new government doesn’t come out with a notification before June 3oth, as per precedence of law, the duty structure applicable before the budget will apply. Meaning, prices of cars could rise by as much as 6%, whereas motorbikes could cost you more by 4.5-5%.
The current government is expected to present a full budget in the month of July, whereas, the outgoing government in it’s interim budget announced the duty cut to help an industry worst hit by the country’s economic slowdown. The industry is worried that the new government will issue a notification, which could increase the excise duty, which will catapult into a price hike.
In our other story yesterday about the Auto Industry’s wishlist from the budget, the SIAM, FADA and ACMA is pushing hard for the government to assist the industry bouncing back, however this new development comes across as confusion to many.