Union Budget 2012: Everything About its Impact on Auto Sector
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Re: Government Raises Tax Upto 25% For Diesel Cars
Yes you are right include the q7 s and x5,6, also and the so called 80,000 flat tax on diesel cars has not been implemented ![[clap]](https://www.theautomotiveindia.com/forums/images/smilies/Clap.gif "Clap [clap]")
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^^ so pajeros, fortuners, and santa fe fall into that category i guess.
this will encourage /force the manufacturers to get them as CKD rather than
CBUs
this will encourage /force the manufacturers to get them as CKD rather than
CBUs
.Re: Government Raises Tax Upto 25% For Diesel Cars
Ok here you go guys
In what has been a mixed Budget that saw cut in personal income tax across various slots, Finance Minister Pranab Mukherjee has also announced a rise in excise and import duty.*
The Finance Minister has pushed Excise duty up on large cars from 22 per cent to 24 per cent, while customs duty on auto parts and bicycles has also been increased.* * However, he has not announced extra tax for diesel vehicles, which will come as a big relief to the auto sector. * Here are the highlights of the Union Budget that will affect the Auto Sector: * * Basic Excise duty hiked to 12 per cent from 10 per cent Budget 2012. * Excise duty on large cars from 22 per cent to 24 per cent.* **Large cars to attract upto 27 per cent duty,*MUVs, SUVs enhanced **Cars to attract ad valorem rate of 27 per cent **Customs duty on bicycles and parts increased **Standard excise duty rate raised from 10 per cent to 12*per cent, to add*additional revenue of Rs 18,650*crore **LNG exempt from customs duty
What Now?
Auto companies are planning to pass on hike in excise duty and raise prices. A*price hike is likely, they say.
Maruti: Will pass on hike; price revisions to be announced soon GM: Will pass on excise increase to consumer; Likely to see prices increasing from Rs 5000 – Rs 40,000 TVS: Will announce price revisions tomorrow; Have no choice but to pass on excise hike Toyota: Not good for industry, additional burden on customer now will lead to sales slowdown* M&M: Relieved there’s no extra tax announced for on diesel vehicles. On the whole, Budget has been along expected lines as far as excise hike is concerned.
What was Expected: * Extension of 200% accelerated deduction for R&D expenses (expiring on 31 March 2012) for a longer term. Introduction of specific tax breaks for R&D service providers Excise duty hike for FY13 – negative Hike in duty on diesel cars – negative Diesel subsidy: fix amount per litre to cut subsidy outgo * The story so far * The auto industry is dealing with many challenges like lower growth rate, rising fuel prices, inflationary trends, swelling interest rates. * Car sales in India*grew 13.11 per cent to 2,11,402 units in February as customers rushed to buy vehicles fearing rise in prices post the Union Budget, to be presented this week.*"People are expecting increase in car prices after the Budget as the government may roll back two per cent excise concession given as stimulus during the 2008-9 slowdown,"*SIAM*Director General Vishnu Mathur told reporters here.
* Advocating raising fuel price with rise in input cost, the pre-Budget Economic Survey asked the government to pay a fixed amount per litre as diesel subsidy so as to cut subsidy outgo. * There has been calls from different quarters to tax diesel cars saying subsidised fuel has been benefiting the affluent.* * However, the auto sector has also lashed out at the government for trying to impose higher tax on diesel cars, while preparing to cut duties on those imported from Europe. SIAM too has flayed the government's move. * India, the second -fastest growing car market in Asia after China, suffered a slowdown in demand in 2011 as many potential new car buyers deferred purchases due to costly auto loans and rising fuel expenses. Diesel car sales are now expected to propel the sales.
Ok here you go guys
In what has been a mixed Budget that saw cut in personal income tax across various slots, Finance Minister Pranab Mukherjee has also announced a rise in excise and import duty.*
The Finance Minister has pushed Excise duty up on large cars from 22 per cent to 24 per cent, while customs duty on auto parts and bicycles has also been increased.* * However, he has not announced extra tax for diesel vehicles, which will come as a big relief to the auto sector. * Here are the highlights of the Union Budget that will affect the Auto Sector: * * Basic Excise duty hiked to 12 per cent from 10 per cent Budget 2012. * Excise duty on large cars from 22 per cent to 24 per cent.* **Large cars to attract upto 27 per cent duty,*MUVs, SUVs enhanced **Cars to attract ad valorem rate of 27 per cent **Customs duty on bicycles and parts increased **Standard excise duty rate raised from 10 per cent to 12*per cent, to add*additional revenue of Rs 18,650*crore **LNG exempt from customs duty
What Now?
Auto companies are planning to pass on hike in excise duty and raise prices. A*price hike is likely, they say.
Maruti: Will pass on hike; price revisions to be announced soon GM: Will pass on excise increase to consumer; Likely to see prices increasing from Rs 5000 – Rs 40,000 TVS: Will announce price revisions tomorrow; Have no choice but to pass on excise hike Toyota: Not good for industry, additional burden on customer now will lead to sales slowdown* M&M: Relieved there’s no extra tax announced for on diesel vehicles. On the whole, Budget has been along expected lines as far as excise hike is concerned.
What was Expected: * Extension of 200% accelerated deduction for R&D expenses (expiring on 31 March 2012) for a longer term. Introduction of specific tax breaks for R&D service providers Excise duty hike for FY13 – negative Hike in duty on diesel cars – negative Diesel subsidy: fix amount per litre to cut subsidy outgo * The story so far * The auto industry is dealing with many challenges like lower growth rate, rising fuel prices, inflationary trends, swelling interest rates. * Car sales in India*grew 13.11 per cent to 2,11,402 units in February as customers rushed to buy vehicles fearing rise in prices post the Union Budget, to be presented this week.*"People are expecting increase in car prices after the Budget as the government may roll back two per cent excise concession given as stimulus during the 2008-9 slowdown,"*SIAM*Director General Vishnu Mathur told reporters here.
* Advocating raising fuel price with rise in input cost, the pre-Budget Economic Survey asked the government to pay a fixed amount per litre as diesel subsidy so as to cut subsidy outgo. * There has been calls from different quarters to tax diesel cars saying subsidised fuel has been benefiting the affluent.* * However, the auto sector has also lashed out at the government for trying to impose higher tax on diesel cars, while preparing to cut duties on those imported from Europe. SIAM too has flayed the government's move. * India, the second -fastest growing car market in Asia after China, suffered a slowdown in demand in 2011 as many potential new car buyers deferred purchases due to costly auto loans and rising fuel expenses. Diesel car sales are now expected to propel the sales.
Re: Government Raises Tax Upto 25% For Diesel Cars
If I am not mistaken, excise duty has been hiked by 2% for all cars manufactured in India, irrespective of the fuel it uses. Excise duty on small cars has been hiked from 10% to 12% and large cars from 22% to 24% irrespective of whether it runs on petrol or diesel.
I am not sure about the applicability of 27% excise duty though.![[confused]](https://www.theautomotiveindia.com/forums/images/smilies/Confused.gif "Confused [confused]")
If I am not mistaken, excise duty has been hiked by 2% for all cars manufactured in India, irrespective of the fuel it uses. Excise duty on small cars has been hiked from 10% to 12% and large cars from 22% to 24% irrespective of whether it runs on petrol or diesel.
I am not sure about the applicability of 27% excise duty though.
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Re: Government Raises Tax Upto 25% For Diesel Cars
I think Fortuner is not a CBU, but Pajero sport and Santa fe are. Bad timing on the part of Mitsubishi, they could've waited 4 days.
I think Fortuner is not a CBU, but Pajero sport and Santa fe are. Bad timing on the part of Mitsubishi, they could've waited 4 days.
Re: Government Raises Tax Upto 25% For Diesel Cars
MUL, M&M, Honda to hike prices by up to Rs 70,000
Live! MUL, M&M, Honda to hike prices by up to Rs 70,000 - Rediff.com Business
MUL, M&M, Honda to hike prices by up to Rs 70,000
Live! MUL, M&M, Honda to hike prices by up to Rs 70,000 - Rediff.com Business
Re: Government Raises Tax Upto 25% For Diesel Cars
There was a special tax of Rs. 15k on large cars/SUVs/MUVs having engine capacity greater than 1500 c.c. This was in addition to 22% Excise Duty.
Such cars/SUVs/MUVs will now attract excise duty of 27% in place of 22% + Rs. 15k.
I am not sure about the applicability of 27% excise duty though.
Such cars/SUVs/MUVs will now attract excise duty of 27% in place of 22% + Rs. 15k.
Re: Government Raises Tax Upto 25% For Diesel Cars
The good part is diesel vehicles are not taxed![[:)]](https://www.theautomotiveindia.com/forums/images/smilies/Smile.gif "Smile [:)]")
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And as far as excise of 2% hike is concerned, then petrol cars will be impacted as well. All in all, buyers with diesel bookings need not worry.
The good part is diesel vehicles are not taxed
.And as far as excise of 2% hike is concerned, then petrol cars will be impacted as well. All in all, buyers with diesel bookings need not worry.
Re: Delhi Govt. Increases Tax Upto 25% For Diesel Cars
to the extent of my limited understanding, cost of refinement of petrol is much higher that that of diesel.
On separate note, budget is non-populistic with basic commodities going up, service tax going up (so we pay more for every service recieved - good or bad) and the salaried tax rates do not see much of change to give an anti-inflationary benefit.
So overall its slightly worse off than current situation - only hope being the incremental revenue is used judiciously to boost infra.
to the extent of my limited understanding, cost of refinement of petrol is much higher that that of diesel.
On separate note, budget is non-populistic with basic commodities going up, service tax going up (so we pay more for every service recieved - good or bad) and the salaried tax rates do not see much of change to give an anti-inflationary benefit.
So overall its slightly worse off than current situation - only hope being the incremental revenue is used judiciously to boost infra.
Re: Government Raises Tax Upto 25% For Diesel Cars
Very Very Unfair act from car Co. - Shifting the burden directly to customers![[evil]](https://www.theautomotiveindia.com/forums/images/smilies/Evil.gif "Evil [evil]")
Very Very Unfair act from car Co. - Shifting the burden directly to customers
Re: Government Raises Tax Upto 25% For Diesel Cars
Tata has announced price hike for commercial and passenger vehicles (Link). And this is the reaction of Mr. Vipin Sondhi, CEO, JCB India on National Budget 2012.
Drive Safe,
350Z
Tata has announced price hike for commercial and passenger vehicles (Link). And this is the reaction of Mr. Vipin Sondhi, CEO, JCB India on National Budget 2012.
Drive Safe,
350Z
PM's economic adviser hints at action on diesel subsidy - The Times of India
PM's economic adviser hints at action on diesel subsidy
Correct.... GOI also is responsible for this.
PM's economic adviser hints at action on diesel subsidy
Very Very Unfair act from car Co. - Shifting the burden directly to customers
Re: Government Raises Tax Upto 25% For Diesel Cars
EPF IR Slashed 1.25%
Excise duty hike 2% to 5%
Diesel - Subsidy going to cut down in near future (Within next 2-3 months)
LPG - Subsidy going to cut down in near future (Within next 2-3 months)
Petrol - Going to hike Rs. 5/Ltr.
DTC - Not implemented
Service tax - Hiked
Aviation Ind. - Spare parts - Import duty completely withdrawn for aircraft.
Power Sector (Private) - SOP, relaxation for coal import.
Bottom line - सरकार का हाथ ख़ास आदमियों के साथ ...
EPF IR Slashed 1.25%Excise duty hike 2% to 5%
Diesel - Subsidy going to cut down in near future (Within next 2-3 months)
LPG - Subsidy going to cut down in near future (Within next 2-3 months)
Petrol - Going to hike Rs. 5/Ltr.
DTC - Not implemented
Service tax - Hiked
Aviation Ind. - Spare parts - Import duty completely withdrawn for aircraft.
Power Sector (Private) - SOP, relaxation for coal import.
Bottom line - सरकार का हाथ ख़ास आदमियों के साथ ...