SIAM wants Excise Duty on Large Cars and SUVs slashed

SIAM wants Excise Duty on Large Cars
and SUVs slashed
The Society of Indian Automobile Manufacturers (SIAM) wants lower excise duty on large cars and SUVs. It wants the government to lower the rates from the current 30% to 20% in Budget 2016.This demand for excise duty cut is among the top proposals SIAM has put forth.

Explaining why they’re asking for these measures SIAM Director General Vishnu Mathur told PTI, "From 12.5 to 30 per cent, the differential in excise duty has grown over the years. We are asking for two rates - one for small cars and one for large vehicles."

As of now, sub four meters passenger cars have excise duty of 12.5%. Cars over four meters but with engine less than 1,500 cc capacity attract 24% duty. 1,500 cc cars are charged excise duty of 27% and those with ground clearance of more than 170 mm attract an excise duty of 30%.

It has also asked the Modi government to offer an incentive for scrapping old vehicles. Their scrapping incentive is aimed to help reduce air pollution.

"We want this vehicle scrapping scheme to be incentive based and not a mandatory one. Even if 15-20 per cent old vehicles go off the road, it will make a huge difference. Besides, the scheme would be revenue positive for the government," Mr Mathur said.

The government will present Budget 2016 on February 29th.

Image credit: Indiatimes