New Delhi: 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 Rs5,000 per unit.
It also cut the duty of petrol-driven trucks to 8% from 20% at present.
“In (the) case of vehicles of engine capacity below 2000cc, this component (specific duty) was Rs15,000 per unit, while for vehicles of (a) higher engine capacity it was Rs20,000 per unit. These rates are now being unified at the lower level of Rs15,000 per unit,” finance minister Pranab Mukherjee said while presenting the Budget for 2009-10 on Mondday.
Excise duty on petrol-driven trucks and lorries has also been reduced to 8% from 20%.
“Petrol-driven trucks provide a useful means of transport within cities and across short distances. These are chargeable to excise duty of 20%. I propose to reduce excise duty on these trucks to 8% 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 8% from 20%, although the fixed component of Rs10,000 would continue to be levied.
Aiming to reduce the usage of fuel guzzlers, the government had last year imposed the fixed excise duties of Rs15,000 for cars with an engine capacity of 1,500cc-1,999cc and Rs20,000 for engines with 2,000cc and above. This was in addition to the already existed 20% duty on such cars.