Excise Payment Of Auto Industry Rose By 54%

By By: Vicky.in

Published: Thursday, January 20, 2011, 14:25 [IST]

During the ongoing fiscal, the excise payment for the auto industry rose by 54%. The rise in the excise payment of the auto industry was due to the exorbitant sale volume witnessed during some months of 2010 FY. The growth of auto industry was 31% during the first half of 2010-11 where in the excise payment was Rs11,901 crore which was 7,684 crore during the corresponding period of the previous fiscal.

The president of SIAM claimed that the industry has poured such excise volume to the coffers of the government. He expressed the continued stint in the remaining periods of the fiscal provided the government does not alter any taxation policy.

There was an increase of 2% in excise duty of auto industry during the last year budget. Prior to that, in December 2008, the same government reduced the excise duty by 4% in a bid to ease the financial recession. Through this the government could amass Rs60,834 crore making the rise by 20% in the said fiscal which was 18% in the previous fiscal.

The existing excise rate for auto industry is flat 10%for major range of cars while it is 22% for bigger cars. During the period April-December 2010, the thumping volume of sale hit a new mark, 1.31 vehicles. The coming months are expected to rise the momentum in terms of cars in domestic market. The same sort of momentum is in the offing of two wheeler exports.

Article Published On: Thursday, January 20, 2011, 14:12 [IST]

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