No Tax Concessions for Imported Hybrids, Big Cars: Chidambaram
Posted on July 21st 2008Welcome back!
Dashing hopes of the big car manufacturers for the excise duty at same level with the small car, Finance Minister P. Chidambaram has ruled out extending tax concessions to bigger vehicles.
He also said that there was no scope for decreasing duties on the imported hybrids vehicles, while government could consider providing extra tax incentives if they were built in India.
We are not giving any tax concessions to big cars because they are fuel inefficient compared to the small cars.
- Mr. Chidambaram said.
According to him, the incentives to small cars were given on ground that ‘they are fuel efficient’.
The government has been regularly reducing excise duty on the small cars as the part of plan to build the India ‘a global manufacturing hub’.
In 2006, the FM (Finance Minister) had cut excise on the small cars to 16% from 24% and this year’s budget had carried it down further to 12%.
The 1400mm cars with 1200cc - petrol and 1500cc - diesel options eligible for an excise concession on the small cars.
Asked if there were plans to extend the tax incentives to imported hybrid units, Chidambaram said the government would do so only if they were built in India.
By editor in Auto Finance, Auto India News