New Delhi, June 13 (UNI) Large cars, Multi-Utility Vehicles (MUVs) and Sports-Utility Vehicles (SUVs) will become costlier with the government today deciding to hike central excise duty on these vehicles.
The duty change is applicable to these vehicles which have an engine capacity of 1500 cc, mostly used by affluent section of the society.
These would now be chargeable to a specific rate of duty in addition to the existing ad valorem rate of 24 per cent.
For cars, MUVs and SUVs of engine capacity ranging from 1500 cc to 1999 cc, a specific duty of Rs 15,000 per unit has been imposed while for those having an engine capacity of 2000 cc and above, the specific duty is Rs 20,000 per unit.
However, there is no change in the duty applicable to cars of engine capacity upto 1500 cc.
The notifications issued in this regard come into force with immediate effect.
The government also decided to raise export duty on iron ore and certain steel items to make these available in a greater measure in the domestic economy. On certain other steel items it brought down export duty.
While the government did not give any reasons for hiking excise duty on large cars, MUVs and sports cars, analyst, however, say that this could bring down the energy consumption, less clogging on the roads, apart from bringing more money into the government's kitty.
UNI MP/GS RKM BD2035