In a news that will bring much cheer to automakers, the government has decided to extend the excise duty cut on cars and bikes till atleast March 2015. The Union Minister for Heavy Industries, Anant Geete has confirmed the news. The government had earlier announced an excise duty cut extension till December 31.
In the last budget that UPA presented, excise duties for small and big passenger cars and two wheelers were slashed. Duty for small cars was cut from 12 percent to 8 percent, and was brought down to 24 percent from the earlier 30 percent for SUVs. Large cars were made eligible for 24 percent excise duty instead of 27 percent, and the duty for mid-sized cars was adjusted from 24 percent to 20 percent. For two-wheelers, including scooters and bikes, excise duties were cut from 12 percent to 8 percent.
The cut in excise duties has helped passenger car and two wheeler sales. Even sales of commercial vehicles have started showing signs of growth. With the festive season just around the corner, the news of excise duty cut extension will only boost sales further.