Union Budget in India has announced an increased the Excise duty for small cars from 8% to 10% and for big cars and SUV from 20% to 22%. This is certainly a bad news for consumers as well as the Indian Automobile Industry.
This is not it, another hurting thing is that petrol and diesel prices have also gone higher which will further effect the running costs of small and large cars now.
[image credit – flickr]
This budget has been welcomed by salaried class because of the direct tax reforms, but indirect taxes will put some burden like the excise increase will surely impact the Auto industry in a bad way.
There is one strategic message in this excise duty hike by the Govt of India. The message is to Go Green. This is so because electric cars see a reduction in excise by 4% to 4% which was earlier 8%. The electric vehicles also get exemption from custom duty and other special duties on the components used. Excise duty has been waived off on solar panels and we can now see more solar powered rickshaws.
The message is quite clear to promote eco friendly electric and Hybrid cars.
Many Indian car companies have announced price hike in their cars.
