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SIAM for retaining excise on small cars at current levels

SIAM for retaining excise on small cars at current levels

New Delhi: Ahead of the Budget, Society of Indian Automobile Manufacturers on Tuesday asked the government to retain excise duty on small cars at the current level of 10% even though the industry witnessed good growth this fiscal.

“The automobile industry contributed 86% more excise (to the government) than last year, accounting 26% of the overall excise kitty and there is no need to roll back to the levels of the pre-stimulus package days," Society of Indian Automobile Manufacturers president Pawan Goenka told reporters in a video conference from Mumbai.

As part of the stimulus package provided by the government to overcome the 2008-09 downturn, small cars had enjoyed a reduction in excise duty to 8% from 12% earlier. It was later increased to 10% in last year’s Budget.

Big cars, sports-utility vehicles and multi- utility vehicles currently attract 22% excise duty.

“Any change in excise, whether an increase or decrease will be passed on to the consumers. Let it remain at 10% and not increase to 12% that was prevailing at the pre-stimulus package days," Goenka said.

Asked about the wishlist of the auto industry ahead of the Budget, he merely said SIAM representatives have met Finance Ministry officials without commenting on the details.

“We have had discussions with the government and are quite encouraged by the response and we have been promised that there would be a fair look at the points that we have raised," Goenka said.

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