Excise duty concession on vehicles to continue till March '15

The Government of India has announced that it will continue with the concession on excise duty on vehicles till March 2015 at least.

In February, in the interim budget for 2014, the Government of India had slashed the rates of excise duty on vehicles. The duty on small cars was slashed from 12% to 8%, medium-sized cars from 24% to 20%, large cars from 27% to 24%, SUVs from 30% to 24% and motorcycles and scooters from 12% to 8%. This step was taken to revive the automobile market in the country which was going through the worst slump in its history. This reduction in the rate of excise duty would be applicable only till the June 30, 2014. In June however, the Government decided to extend the excise duty concession on vehicles by six months till December 31, 2014. With the new announcement, the concession has been extended by another three months.

Over the past few months, the automobile sector is seeing a revival. Car sales grew more than 15 per cent in August, the fastest pace so far this fiscal year. With the reduced duty and festive season fast approaching, sales are likely to receive a further boost.

Source: ET Auto