Excise Duty on Small Cars and SUVs Reduced in Budget 2014


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An interim budget 2014 is being presented today and FM has listen to the concerns made by Auto industry and see the results below.

Excise duty cut for large and mid-segment cars (20% cut), small cars and two wheelers (12% to 8% ), SUVs (24% from 30%).[:)]

We could discuss this effect on present cars and the cars which have got launched during the recent Auto Expo 2014 at Delhi.
 
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Excise Duty on Small Cars and SUV reduced in Budget 2014

The excise duty reduced for small cars from 12% to 8%; for SUVs from 30% top 24%: Chidambaram

Small Cars and SUV to cost less
 
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Re: Excise Duty on Small Cars and SUV reduced in Budget 2014

In his Vote on Account 2014 speech, Chidambaram announced that the excise duty for small cars, motorcycles and commercial vehicles will be reduced from 12% to 8%. While for mid-segment cars the duty was cut to 20% from 24%, for SUVs the excise duty was cut from 30% to 24%.

In his last Budget speech, Chidambaram had increased excise duty on Sports Utility Vehicles from 27% to 30%, while keeping excise duty constant for all cars at 12 per cent.

Read more at:
Vote on Account 2014: Cars to become cheaper, as FM slashes excise duties - The Economic Times
 
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Re: Excise Duty on Small Cars and SUV reduced in Budget 2014

Excise duty on small cars, motorcycles, scooters reduced from 12 to 8 per cent till 30.06.2014.
Excise duty on consumer durable s cut from 12 to 10 per cent till 30.6.2014.
Cut excise duty on mid segment cars to 20% from 24%
Duty cut on SUV cars from 30% to 24%

Source : Interim Budget 2014: Reject the charge of policy paralysis, says Chidambaram

The boost to automotive industry was on the cards for last 12 months.

Effect - People who have booked and looking to buy new cars please hold not as prices are going to drop. Same thing happened to me in Dec2008 when ED was dropped from 10% to 8% I gained an neat 12K on my pre booked car.
 
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Re: Excise Duty on Small Cars and SUV reduced in Budget 2014

By doing this cut what does the Fin Minister achieve?
Why didn't he do it in the last budget ,when the Automobile industry was really in the doll drums?
For SUVs why did he increase it last time and now decrease it?
I have some answers.
But these are questions everyone in auto field must think about.[;)]
Especially in an election year.
 
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But the bigger question is will the manufacturers pass on the benefit?Ford won't pass the benefit in case of Ecosport I guess.So will the fast selling models from other makers.
 
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But the bigger question is will the manufacturers pass on the benefit?Ford won't pass the benefit in case of Ecosport I guess.So will the fast selling models from other makers.
They have to pass and pass it immediately w.e.f from midnight today. That is how Excise works. All vehicles passing gates today night onward will have lower taxes.

Practically that is not applicable on old stock, but how can a dealer sell 2013 stock or Jan 2014 stock at higher price than current one ?
Hence all prices will get reduced. I got this benefit personally in 2008 I can vouch for it.
 

vijay

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They have to pass and pass it immediately w.e.f from midnight today. That is how Excise works. All vehicles passing gates today night onward will have lower taxes.

Practically that is not applicable on old stock, but how can a dealer sell 2013 stock or Jan 2014 stock at higher price than current one ?
Hence all prices will get reduced. I got this benefit personally in 2008 I can vouch for it.
Exactly, all the effects would be by tonight midnight and applicable, so tomorrow morning all the new invoices would be with lesser excise tax as applied by the finance minister's new policies.
And this would be pass on to every buyers as how anshuman said.
 
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Maruti to cut prices 'immediately'

NEW DELHI: Country's top carmaker Maruti Suzuki will cut prices "immediately" after the government announced a cut in excise duty in the vote on account.

"Prices cuts will happen immediately," Maruti chairman RC Bhargava told TOI here. Models that will get cheaper include the Alto, WagonR and Swift hatchbacks and others like the Ertiga MPV and Dzire sedan.

P Chidambaram cut the duty on small cars and 2-wheelers from 12% to 8% while also reducing the duty on bigger cars and SUVs.


Bhargava said that the government's measure will help pull the car industry out of the slowdown it currently is in. "This will certainly give an impetus to buy new cars."

However, he added that the real benefit of the measure will be if it is maintained in the regular budget that will be presented by the new government.

Source - Maruti to cut prices 'immediately' - The Times of India
 
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Sorry situation for people who bought their rides in the past 2-3 months. Hard earned money gone into wrong hands. :eek: [sad]

Just imagine of those who bought their rides in past 7-10 days. [cry]
 
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More so on people who are taking delivery today. Wise people will postpone their delivery by about a week to get the discounts.
 
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