SIAM Seeks Retention For Small Cars

By Anjana Ns

Published: Wednesday, January 12, 2011, 16:03 [IST]

The pre-budget proposal came from the SIAM which sought the Indian government to retain the existing excise rates for small cars- 10 percent, despite a tremendous show by the auto industry in the concluding fiscal period. He accounted that the Indian government has accrued 86 percent of excise than the previous year which amounts to 26 percent of the net excise taxation. The president of SIAM said that the government need not alter the excise rate in practice in now.

During 2008-09 the Indian government allowed a reduction of excise duty for small cars from 12 to 8 percent. This was mooted to stabilize the falling economy and in the succeeding year the government increased it to 10 percent, by levying 22 percent for SUVs, MUVs and big cars. He said whatever may be the change regarding this excise will definitely be passed over straightly to the customers.

Hence it is advisable to ease them from heavy shelling of amount, he was quoted as saying, as he along with representatives has met the Union FM for stressing the industry revival. He said that the minister"s response had been positive and hoped to proceed well in the coming year too.

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Article Published On: Wednesday, January 12, 2011, 15:23 [IST]

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