Union Heavy Industries Minister Anant Geete favours further extension of excise duty to Auto Industry

05 Feb, New Delhi

Ministry of Heavy Industries and Public Enterprises of Government of India wants the restoration of reduced excise duty concession provided to the automobile industry that expired in December last year. Anant Geete said in New Delhi Thursday that his ministry has suggested the Finance Minister for continuation of reduced excise rates.

To a question whether the ministry had proposed to the Finance Minister to extend the excise duty benefits to the auto industry in the forthcoming Budget, Geete said the concessions had been extended by the UPA government in the interim Budget in February, and had been later extended by the NDA government till 31 of December last year.

Excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 per cent from 12 per cent previously. In case of SUVs, the excise duty was reduced to 24 per cent from 30 per cent, whereas in mid-sized car it was reduced to 20 per cent from 24 per cent.It was slashed form 27 percent to 24 percent for big cars.