Likes of Honda Civic prices likely to reduce Rs 50k

If a proposed duty cut is implemented by the government, likes of Honda Civic and other luxury cars cost will reduce up to 50,000. In fact, a car's cost include a huge amount related to taxes only.  Surajit Mitra, additional secretary at the heavy industries ministry, informed on the sidelines of the Ficci seminar in Delhi that the ministry of heavy industries has written to the finance ministry to waive off the particular excise duty levied on mid-size and top-end cars last year.
The government had imposed an additional tax of Rs 15,000 on cars having engine size between 1,500-2,000cc and Rs 20,000 on all vehicles beyond 2,000cc. But the actual impact on the selling price of cars was much higher, as the tax was imposed on ex-factory price of vehicles over which consumers have to incur the burden of sales tax and other local levies. The additional tax, which was to dissuade consumers from buying the gas guzzling vehicles, has impacted sales of premium cars such as the Honda Civic and the Toyota Corolla.

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