In the Interim Budget, Finance Minister P Chidambaram reduced excise duty on small cars and motorcycles from 12pc to 8pc. There is also a cut to 20pc for large and mid segment cars and 24pc (from 30pc) for SUVs. Commenting on this, Sachin Menon, National Head of Indirect Tax, KPMG in India, said, "Vote on account gave the much needed relief to the capital goods, consumer durables and auto sector at a time when the demand is low. This would spur the demand in the interim provided the benefit is passed on"
"Manufacturing productivity was low for the past few months and with the concessions for capital goods, auto and consumer durables we hope to increase demand and therefore productivity," he added.
The full budget will be presented in July. Among the other highlights of this interim budget are that the 10pc additional surcharge on income tax for those earning above Rs 1 crore -- the "super-rich" tax -- has been extended from FY14 to FY15.
The impact of the excise duty cut is seen at about Rs 10,000-Rs 12,000, according to analysts.
PICTURE FOR REPRESENTATION PURPOSE ONLY
Marelli, a global mobility technology supplier to the automotive sector, announces the launch of its new generation Port Fuel Injection Engine Control Units (PFI ECUs) dedicated to gasoline, flex fuel...
Chiltier, a wearable climate technology company, has announced the launch of its much-anticipated Hydro Vest, a thermoelectric personal cooling and heating system. The vest has been designed to help u...
Apollo Tyres Ltd has formally inaugurated its state-of-the-art dedicated outdoor tyre testing facility at Ivalo, Finland. The setting up of this facility was announced few months back and it became fu...