Auto biggies hope for a reduction in excise duty for big cars

As the budget is approaching, the Indian auto industry is expecting to enjoy perks and various benefits accredit to the growth it is has achieved. There is a buzz around that the government has been asked to reduce the excise duty on cars and also requested to remove the extra Rs 15,000 tax in order to shrink the gap between the small cars.

The auto mobiles which are bigger than four metres and above 1200 cc for petrol mill and 1500 cc for diesel mill comes under big cars.  Cars which measure smaller than the above mentioned figures falls under the small car category which attracts 10 per cent excise duty. Society of Indian Automobile Manufacturers (SIAM) every year makes a pre budget and present it to the government. Though SAIM was not available for the comments.

As per a source the auto mobile industry representatives, in a meeting with the finance ministry executive have requested to remove the additional Rs 15000 tax on the big cars which will help in reducing the gap with the small cars.  The auto industry has also asked the government to maintain the present excise levels on the small car.

Other than this, the Indian automobile sector also wishes to maintain the present custom duty structure on the imported cars to protect the Indian auto industry and also to encourage production of auto motives in India. The fully imported car is levied with more than 100 per cent custom duty.

The domestic auto sector observed a growth in this financial year, in total it sold 1,26,76,247 from April-January period in this fiscal which was 99,37,850 cars same time a year ago, accounting to 27.56 per cent of growth. The auto mobiles sales leaped to 31.31 per cent at 15,99,495 cars over 12,18,060 cars in the same time in the last financial year.

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