SIAM to request roll-back on SUV excise hike: Budget 2013
SIAM- the central body of Indian automobile manufacturers have decided to ask India’s fianance minister, Mr P Chidambaram for a roll-back on excise duty hike levied on SUVs under Budget 2013.
The proposed hike in excise duty of SUVs, has resulted in¬†Indian auto industry unanimously voicing their displeasure over Budget 2013. Though SIAM had welcomed the Budget 2013, they are not happy with the hike in excise of SUVs. Its not only SUVs that will be affected, as Budget 2013 says, all vehicles with an engine larger than 1500 cc, ground clearance of more than 170mm and length over 4m, are SUVs.
This means, that Maruti Suzuki SX4, Toyota Corolla Altis, Honda Civic also fall in the SUV category, and could see increase in prices by upto INR 40,000. Other than this, the favorite SUVs of India, like the Mahindra Scorpio, XUV500, Renault Duster petrol, Toyota Innova, can see an increase in prices by upto INR 60,000.
In an¬†interview¬†with PTI, Dr Pawan Goenka, President, M&M (Automotive and Farm Equipment Sectors), said,¬†“The higher excise duty on SUVs was totally uncalled for. This was the only segment which was showing some growth. We had a post Budget meeting of SIAM members and it was unanimously decided to ask the FM to reconsider the decision. Our concern is that among vehicles in the same price category, one may have to pay the higher excise duty and other may not.”
Apart from this, the Budget 2013 also states that import duty on completely built cars which cost over $40,000, have engine larger than 3000cc for petrol and 2500cc for diesel, will now attract 100% import duty, compared to the previous 75%. This will see the base models of applicable variants of Land Rover to be dearer by INR 15 lakhs, while that of Lamborhgini by INR 60 lakhs. SIAM will not be asking for a roll back on this, so the rich are once again punished to earn more.