Excise duty on SUVs hiked; 100% import duty on luxury vehicles
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Excise duty on SUVs hiked; 100% import duty on luxury vehicles

Last Updated: Thursday, February 28, 2013, 13:52
 
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Excise duty on SUVs hiked; 100% import duty on luxury vehicles
New Delhi: Excise duty on sports utility vehicles has been increased to 30 percent, while all luxury vehicles, including super bikes will attract 100 percent import duty.

"SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 percent to 30 percent. However, the increase will not apply to SUVs registered as taxis," Finance Minister P Chidambaram Thursday said in his Budgetary proposals.

Stating that the affluent class in India consumes imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vessels, Chidambaram expressed confidence that "they will not mind paying a little more".

"Hence, I propose to increase the duty on such motor vehicles from 75 percent to 100 percent," he added.

Chidambaram also proposed to hike the import duty on motorcycles with engine capacity of 800 cc or more from to 75 percent from 60 percent.

"...And on yachts and similar vessels from 10 percent to 25 percent," he added.

To boost manufacturing and selling of environment- friendly vehicles, Chidambaram proposed to continue and extend the currently available concessions on specified parts of electric and hybrid vehicles till March 31, 2015.

In Budget for 2012-13, the excise duty on specified parts of hybrid vehicles was reduced to 6 percent from 10 percent.

Excise duty on lithium ion battery packs for electric or hybrid vehicles was also cut to 6 percent from 10 percent.

Besides, the full exemption from basic customs duty and special CVD with concessional excise duty or CVD of 6 percent on some parts of hybrid vehicles was extended to specified additional items and lithium ion batteries imported to make battery packs for electric or hybrid vehicles.

PTI


First Published: Thursday, February 28, 2013, 13:52


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