Feb 28, 2013, 08.40 PM | Source: CNBC-TV18
Budget 2013-14 has turned out to be a mixed bag for the automobile industry, according to RS Sandilya, President Society of Indian Automobile Manufacturers.
“ As far as SUV excise duty is concerned, it is totally unexpected, from 27 percent to 30 percent is an increase, which is unanticipated. ”
- S Sandilya (President)
However there still not absolute clarity on what category of SUVs will face higher excise duty. "We need to go to the fine prints to find out which are the vehicles which are impacted but I am happy that he has not distinguished between diesel and petrol," Sandilya told CNBC TV18
Below is the berbatim transcript of his interview.
Q: As far as the auto sector is concerned, excise stays; the tax on sport utility vehicle (SUV) is gone up from 27 percent to 30 percent. Some exemptions being continued as far as electric vehicles are concerned. But on imported vehicles and that is where we need clarity whereas on the bike side it is very clear, engines over 800cc will be taxed higher. What are you picking up as far as the clarity on the imported vehicles are concerned?
A: He said imported Completely Built Units (CBUs) will be taxed and the increase in tax has been announced around 75-100 percent. To some extent the auto industry has always been saying that the imported vehicle duty should be increased as far as custom duty is concerned because we want to promote manufacturing in the country. So, from that point of view, it is a welcome move from the auto industry perspective, it will improve manufacturing and people will not get CBUs in.
Q: But a big negative as far as SUV makers are concerned?
A: As far as SUV excise duty is concerned, it is totally unexpected, from 27 percent to 30 percent is an increase, which is unanticipated. We need to go to the fine prints to find out which are the vehicles which are impacted but I am happy that he has not distinguished between diesel and petrol though most of the SUVs are diesel but not made a distinction from fuel perspective but the increase is still not necessarily a welcome move, we need to find out.
Budget 2016: Agri Min seeks animal health card scheme
Aiming to control animal diseases and boost milk o
Budget 2016: To favour growth or meet fiscal deficit targets, FM puzzled
Experts are divided on how the Finance Minister sh
Government confident of meeting FY16 fiscal deficit target: Srcs
IMF asks Sri Lanka to reduce budget deficit, improve funds
"While Sri Lanka's public debt has risen to over 7
RBI survey projects FY17 GVA at 7.8%
Output growth, measured using GVA, is likely to im
Budget 2016: Infra sector's wishlist
The NHAI is involved in 112 legal disputes with in