Just 27% excise duty on Maruti SX4, Honda Civic, Toyota Corolla
25 July 2013 10:41 PM GMT
The Revenue Department clarified on Wednesday that Maruti SX4 and Toyota Corolla Altis will attract lower excise duty of 27 per cent and not the levy prescribed for SUVs. The Central Board of Excise and Customs’ clarification has allayed fears that these cars would attract the 30 per cent excise applicable to SUVs instead of 27 per cent meant for large sedans.
'...it is clarified that the aforecited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract excise duty of 27 per cent as applicable to large segment cars', CBEC said in a circular. The clarification was sought by car makers as several large sedans have similar technical specifications as those of SUVs.
Finance Minister P Chidambaram had said in his Budget speech, 'SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 to 30 per cent. However, the increase will not apply to SUVs registered as taxis.'
'...it is clarified that the aforecited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract excise duty of 27 per cent as applicable to large segment cars', CBEC said in a circular. The clarification was sought by car makers as several large sedans have similar technical specifications as those of SUVs.
Finance Minister P Chidambaram had said in his Budget speech, 'SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 to 30 per cent. However, the increase will not apply to SUVs registered as taxis.'
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