The finance minister (FM) Pranab Mukherjee hit a body blow on the struggling passenger car industry with a 2% increase in excise duty. The increased tax is likely to be passed on to the common man tonight and it will dent an already weakening sentiment.
The government has increased the excise duty on large cars from 22 to 24%.
However in what is a major reprieve for the auto industry, the FM did not slap any additional tax on the diesel cars.
Car manufacturers, already reeling under the higher interest rates and fuel prices which has risen by almost Rs14 over the last 12-24 months, saw sales of passenger vehicles grow by a mere 2.95% from April to February this year, after a heady growth of 29% in 2010-12.
The increase in duties will impact demand, say experts.
The excise duty increase will impact two wheeler industry and trucks have off late started showing signs of slowdown.
....more info
The government has increased the excise duty on large cars from 22 to 24%.
However in what is a major reprieve for the auto industry, the FM did not slap any additional tax on the diesel cars.
Car manufacturers, already reeling under the higher interest rates and fuel prices which has risen by almost Rs14 over the last 12-24 months, saw sales of passenger vehicles grow by a mere 2.95% from April to February this year, after a heady growth of 29% in 2010-12.
The increase in duties will impact demand, say experts.
The excise duty increase will impact two wheeler industry and trucks have off late started showing signs of slowdown.
....more info