Increasing prices and high inflation rate was not enough to make life difficult for the common man that now automobile industry is looking to burn another hole in his pocket. Finance Minister, Arun Jaitley is looking to drop a bomb on the passenger car industry in India. It is speculated that the excise duty can be hiked by 4%.
This could increase the average price of a car by up to Rs. 40000. Automobile companies are looking forward to recover this amount from consumers.
According to the experts, 16% excise duty is levied on passenger cars; apart from this 14.5% Value added tax (VAT) and 8% Road tax is collected by the government.
This move is expected to be discussed in the coming Parliamentary budget session.
Automobile industry experts claim that this increase in excise duty will directly affect the on-road price of the cars.
MD of a leading automobile dealership in Guwahati excerpts: “If you are planning to buy a car, then this is the right time as after the budget session cars are definitely going to become costly.
Customers who’ll decide to buy cars before March will make a smart move”