Ahead of the upcoming general elections, Finance Minister P Chidambaram on Sunday sought to lighten the burden on the middle class by lowering excise duty on cars, SUVs and two-wheelers and proposed no increase in taxes on other products.
“To give relief to the automobile industry which is registering unprecedented negative growth, I propose to reduce excise duty..,” Chidambaram said while presenting the Interim Budget for 2014-15.
As per his proposal, excise duty on small cars, motorcycles, scooters and commercial vehicles has been cut to 8 per cent from 12 per cent earlier.
Likewise, the Sports Utility Vehicles will attract 24 per cent excise duty, down from 30 per cent earlier, while large cars that used to attract excise of 27 per cent will now be levied only 24 per cent.
INTERIM BUDGET 2014-15: Key highlights
Moreover, the excise duty on mid-sized cars will be 20 per cent from 24 per cent earlier.
While giving sops to the automobile sector, Chidambaram said: “I propose to make appropriate reductions in excise duty on chassis and trailers.” Read more