Increase in Excise duty for motor vehicles and motor cars – Government's balancing act?
Recently, owing to the pressure from various political parties the Government has reduced Customs and Excise duties on petro products while the price of petrol, diesel and LPG were raised to save the oil companies. This reduction in duties on petro products would have an impact on the Government's revenues. To offset this revenue loss the Government has increased the tariff rates and effective rates of excise duty on motor vehicles and motor cars. Government's attempt to do this balancing act may help the oil companies, but with the rise in fuel prices and now this increase in excise duties on motor vehicles and motor cars would be a double whammy for automotive sector.
Notification No. 39 & all dated 13th June, 2008