Central Board of Excise and Custom (CBEC), issued notification that the prices of Maruti SX4, Honda Civic and Toyota Corolla are expected to go down by about 3%.All this three sedans would be charged at 27%
The Budget had raised excise duty to 30% from 27% on SUVs with engine capacity of over 1500 cc, length exceeding 4000 mm, and having a ground clearance of 170 mm.
Shekar Viswanathan, vice-chairman, Toyota Kirloskar Motor, said, “I am glad the government has issued the clarification. It was creating a lot of confusion with the dealers and the customers.”
Jnaneswar Sen, Senior VP, Marketing and Sales, Honda Car India, said, “This is a welcome move by the government. Definitely there will be price reduction on around 3%. The excise duty is laid on the ex-factory price and the freight costs are charged on the factory cost. But the freight cost will not change.”