Excise cut on auto to continue, says Anant Geete
The Government will continue with the excise cut beyond December, Anant Geete, Minister for Heavy Industries told ETAuto.com in a brief interview.
“I think the industry needs support thus the excise duty cut will continue beyond December and shall be extended at least till March 2015,” Minister for Heavy Industries Anant Geete told ETAuto.com.
It comes as a major relief to the automobile sectors. The government in June this year extended the excise duty incentive by six months to December 31.
The concessions were first announced in the interim budget in February 2012 and were valid till June 30.
The announcement will enable continuation of excise duty on small cars, scooters, motorcycles and commercial vehicles at the current level of 8 per cent from 12 per cent previously.
The factory gate duty on SUVs has been reduced to 24 percent from 30 percent while duty on large cars will continue at 24 per cent compared with 27 per cent earlier. The duty on mid-sized cars will stand at 20 per cent from 24 per cent.
The industry welcomed the assurance and anticipated that this will further strengthen sales growth in the coming months. “This is really an assurance from government that will help the industry to grow,” said Rakesh Srivastava, Sr. Vice President ( Sales & Marketing ) at Hyundai Motor India.
Automobile sales have started to revive in the past few months. Car sales grew more than 15 per cent in August, the fastest pace so far this fiscal year, helped by big discounts and new launches and also clearly signaling improving consumer sentiment as the festival season begins