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

 

HomeNewsBudget ImpactExclusiveTaxRail Budget Celeb Speak Eco Survey
 

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

Last Updated: Thursday, February 28, 2013, 13:52
 
 Comment 1
 
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

Comments

I read in the newspapers that above 800cC motorcycles the govt was going to remove the customs and excise duty in the year 2014/2015 Is this true?-Ashok Mehta -DehraDun
First Prev 1 Next Last 

Post your Comments

Name
Place :
Email :  
Comments :  
 
Other Stories
MSME Sector

P Chidambaram proposed continuing non-tax benefits to these units for three years.

Full Article »

IT-BPO Sector

Clarity on tax issues related to R&D centres in IT soon.

Full Article »

Infrastructure

Big push to infra with Rs 50k cr tax-free bonds, two new ports.

Full Article »

Real Estate Sector

FM raised tax deduction limit by Rs 1 lakh for the first time home buyers.

Full Article »

Auto Sector

Excise duty on SUV will be raised to 30 percent from 27 percent.

Full Article »

More »

Latest Videos
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
rail budget
Rail Minister announced no hike in passenger fares.
know your fm
P Chidambaram- Man of all seasons.
Opinion Poll
How would you see Budget 2013 as?
Pragmatic
Populist
Non-event
 
 
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved