Union Budget Impact on Auto Sector
Finance Minister has partially rolled back the stimulus given for auto sector. The excise duty on big cars (cars with length above 4m) and SUVs goes up by 2% to 22% from 20%. This would result in price of large cars and SUVs marginally. But the FM has retained the small car excise duty at 8%. Also another set back for the auto industry is the additional excise duty of Re1/ litre of petrol/diesel. This means your fuel bill is all set to raise. Finance Minister has also indicated the petroleum ministry would consider implementing the Parikh Panel recommendations of freeing the oil prices (aligning petroleum product prices with international crude rate). This means a heavy raise in petrol and diesel prices.
The government has announced a hike in the prices of auto fuels like petrol prices by Rs 2.67 per litre and diesel prices by Rs 2.58 per litre with effect from tonight.
Small cars/Motorcycles which enjoyed 8 per cent excise duty will now pay 10% excise duty and duty on large cars is levied at 22 per cent plus Rs 15,000 (against 20 per cent plus Rs 15,000 earlier).