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SUVs become dearer
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Additional excise duty slapped on fuel-guzzling vehicles
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As a move to discourage the use of fuel-guzzling vehicles, the Government has slapped an additional excise duty of Rs 15,000 for multi-utility vehicles (MUVs) and sports utility vehicles (SUVs) of 1500cc to 1999cc engine capacity. The duty will be Rs
20,000 a unit on those with a capacity of 2000cc and above.
The duty structure for cars with an engine capacity up to 1500cc would remain unchanged.
This means Honda City, Hyundai Accent GLE, Hyundai Verna diesel, Mahindra Renault Logan diesel and Mitsubishi Lancer petrol (all under 1500cc) have had a close shave.The specific excise duty, which would be in addition to the existing ad valorem duty of 24 per cent, will come into force with immediate effect.
The tax will be levied on vehicles manufactured or assembled in India.
The decision on the additional levy comes on the heels of the Government raising the price of petrol, diesel and cooking gas in the face of a ballooning crude oil bill.
This excise duty hike is expected to affect the large car, SUV and MUV markets in India as it has been touted as anti-growth for this segment.
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