Marc Nassif, MD Renault India, along with Katsumi Nakamura EVP Asia Africa Renault during the Press Review launch of the Renault Duster at the 11th Auto Expo in New Delhi. HT Photo/Rajkraj
Excise duty on sports utility vehicles has been increased to 30 per cent, while all luxury vehicles, including super bikes will attract 100% import duty.
"SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27% to 30%. However, the increase will not apply to SUVs registered as taxis," Finance Minister P Chidambaram today said in his Budgetary proposals.
Stating that the affluent class in India consumes imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vessels, Chidambaram expressed confidence that "they will not mind paying a little more".
"Hence, I propose to increase the duty on such motor vehicles from 75% to 100%," he added.
Chidambaram also proposed to hike the import duty on motorcycles with engine capacity of 800 cc or more from to 75% from 60%.
"...and on yachts and similar vessels from 10% to 25%," he added.
To boost manufacturing and selling of environment- friendly vehicles, Chidambaram proposed to continue and extend the currently available concessions on specified parts of electric and hybrid vehicles till March 31, 2015.
In Budget for 2012-13, the excise duty on specified parts of hybrid vehicles was reduced to 6% from 10%.
Excise duty on lithium ion battery packs for electric or hybrid vehicles was also cut to 6% from 10%.
Besides, the full exemption from basic customs duty and special CVD with concessional excise duty or CVD of 6% on some parts of hybrid vehicles was extended to specified additional items and lithium ion batteries imported to make battery packs for electric or hybrid vehicles.
In what was expected to be a populist budget because of the upcoming general elections next year, no major tax relief was offered to the large middle-income class.
In the face of inflation, it's the affluent who will have to review their habits and whims. The finance minister P Chidambaram has more or less spared items used by the common man from a price hike.
Following is a list of what will be costlier and what will be cheaper:
* Mobile phone handsets priced above Rs. 2000
* Sports utility vehicles
* Imported cars and high-end vehicles priced over $40,000
* Imported bikes with engine capacity of 800cc and above
* Imported yatch and motorboats
* Dining at air-conditioned restaurants
* Sales of immovable property worth over Rs. 50 lakh
* Home/flats with a carpet area of 2,000 sq ft or more or of a value of Rs. 1 crore or more
* Marbles for flooring
* Silk clothes produced using imported raw materials
* Set-top boxes
* Parking fees
* Branded apparel
* Precious stones
* Imported cheaper hazel nuts and dehulled oat grain
* Sabudana (tapioca sago)
* Truck chassis