Rural utility vehicles likely to get excise relief in Budget '11

Auto mobiles which are meant for the rural auto market may get some relief in the excise duty helping the buyers, at better competitive prices. The Heavy Industry Ministry relates to the automotive industry.

A senior official from ministry of heavy industry said that government is paying heed to slash some extra tax or reduce the excise duty which will help the rural buyers. It is also being speculated that heavy auto mobiles will enjoy competitive prices. The utility auto mobile makers which has buyer from rural markets and small towns affix 22 per cent of the excise duty such as on Chevrolet Captiva and BMW X1 the SUVs.

If looking at the 2006-07 budget, the Indian government shrinked the excise duty on small cars from 24 per cent to 16 per cent. The small cars which measure less than four meters and petrol 1200 cc and in diesel 1500 cc engine. After the massive decrease in the excise duty the domestic auto market grew to more than 2 million cars yearly.

However, now the argument is that the auto mobile industry is spreading its wings and now all the auto mobiles should be tagged similarly. In order to achieve this the structure should be changed accordingly.

As per the official the UVs  priced under Rs 10 lakh  cater to mass customers. These vehicles possess various applications on board which helps agriculturist and by reducing the excise duty and the additional tax it will help the buyers.

Read More on : 2013 Chevrolet Captiva