Tax on Sedans, SUVs May Be Removed
May 6 – India’s Ministry of Heavy Industries is recommending that additional excise taxes on Sedans and SUVs like Ford Fiesta, Maruti SX4, Hyundai Verna, Honda Accord, Scorpio and Innova may be cut to boost demand in the auto industry.
Last year, the government meted the additional excise duty of Rs 15,000 for vehicles above 1,500cc and Rs 20,000 on vehicles above 2000cc as a reaction to rising oil prices then.
“We have recommended for the removal of these duties in a note to the finance ministry,” Surajit Mitra, additional secretary in the ministry of heavy industries, told The Times of India.
He added that the recommendation was done to increase demand for sedans and SUVs, which have been impacted by the slowdown plaguing the industry.
If the rule is approved by the Finance Ministry, the cut in taxes will benefit companies like Mahindra, Honda, Ford, Skoda and almost all luxury carmakers like BMW, Audi and Mercedes Benz.
President of Mahindra’s Automotive Division, Pawan Goenka, said the step would be beneficial for the sales of the company’s vehicles and other industry players.
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