Car news

22 March 2013

Government to reconsider duty hike

Union government will review the 3 per cent hike in excise duty after extensive lobbying from automakers

Ashish Masih
Car image

Here’s some happy news coming in as the weekend begins.

The Union government is planning to review its recent budget proposal to raise excise duty on SUVs from 27 to 30 per cent. But before you go hooray there is a caveat. The government is in no mood to reverse its proposal but will modify it instead.

So under the new scheme of things chances are that SUVs upto the Rs 10 lakh price could be let off. That’s good news for Mahindra Bolero and Tata Sumo buyers along with those considering the base versions of the Scorpio. But it’s still not so good news if you were planning to buy the XUV 500 or considering that Honda CR-V.

The other rules to define an SUV remain the same though, which means a car with 170mm ground clearance, having a 1.5-litre engine and above the 4-metre length will be considered an SUV. This definition has meant that cars like the petrol versions of the Maruti SX4 and Toyota Corolla Altis have also fallen into the same bracket thanks to their higher ground clearance. The Union government is considering adding a clause about seating option as well to clear the air between sedans and SUVs.

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Tags: suv, bolero



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