Excise cut for buses, trucks on the cards

With fears of a recession in the ranks looming large, the government is likely to lend a helping hand to the commercial vehicle sector by way of an excise duty cut on trucks and buses.

With fears of a recession in the ranks looming large, the government is likely to lend a helping hand to the commercial vehicle sector by way of an excise duty cut on trucks and buses.

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Currently, trucks attract a duty of 14 per cent while buses enjoy a 2 per cent leverage at 12 per cent but with sales of both segments in the negative in this fiscal so far, government sources said a duty cut is on its way. There are, however, no indications of the quantum of reduction though the next slab is 8 per cent.

“The Prime Minister’s core committee on economic affairs is considering a duty cut in goods and passenger carriers, which play an important role in the overall economy,” said an official in the department of heavy industries.

Only a fortnight back former finance minister P Chidambaram had asked the sutomotive industry to reduce prices, promising to reduce excise duties in return.