New Delhi (PTI): Bigger cars will be cheaper as the government on Monday reduced additional excise duty on those with engine capacities of 2,000cc and above by Rs 5,000 per unit.

It also cut the duty of petrol-driven trucks to eight per cent from 20 per cent at present.

"In (the) case of vehicles of engine capacity below 2000cc, this component (specific duty) was Rs 15,000 per unit, while for vehicles of (a) higher engine capacity it was Rs 20,000 per unit. These rates are now being unified at the lower level of Rs 15,000 per unit," Finance Minister Pranab Mukherjee said while presenting the Budget for 2009-10 on Monday.

Excise duty on petrol-driven trucks and lorries has also been reduced to eight per cent from 20 per cent.

"Petrol-driven trucks provide a useful means of transport within cities and across short distances. These are chargeable to excise duty of 20 per cent. I propose to reduce excise duty on these trucks to eight per cent to equate the duty with similar vehicles run on diesel," Mukherjee said.

Besides, the duties on the chassis of such trucks and lorries have been reduced to eight per cent from 20 per cent, although the fixed component of Rs 10,000 would continue to be levied.

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