2010 Union Budget Effect On Auto Industry
The 2010 Union budget is not very exciting – prospect car and bike buyers. Nor is it any excellent news – current car or bike owners. The Government has increased the excise duty by 2%, translating into small cars attracting 10% excise duty and larger cars will now have to pay excise duty at 22%. Fuels have not been spared either with Rs. 1 per liter excise duty being levied on Petrol and Diesel amounting to a fee hike of Rs 2.67 a liter on petrol and Rs 2.58 per liter – diesel.
Other than the direct hit by excise duty on automobiles, there is an indirect hit too in the -m of excise duty on steel which will be hiked as well resulting in vehicles apt expensive to manufacture and thus costlier to buy. Some car manufacturers have already declared fee hikes. But electric cars see a reduction in excise by 4% to 4%. The electric vehicles also get exemption from custom duty and other special duties on the components used. Excise duty has been waived off on solar panels and we can now see more solar powered rickshaws. Road development fund allocation has been increased to Rs 19,894 crore but as typical our roads will continue to remain in a terrible state.
Source: http://www.motorbeam.com/cars/news/2010-union-budget-effect-on-auto-industry/
Related Blogs
- Related Blogs on 2010 Union Budget Effect On Auto Industry
- Union Budget 2010 « Free to share your thoughts
- Industry reactions on Union Budget 2010 « Pradeep's Point!