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Government has reduced the excise duty levied on big cars.


Excise Duty on Large Cars Reduced
Last Updated: 2009-07-06T17:28:48+05:30
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The Union Budget, which was presented on Monday, has reduced the duties on large cars. A leading NGO quoted that this would increase air pollution in a big way.

In his budget speech at parliament Pranab Mukherjee reduced a "component" added to the 24% ad valorem duty on large cars and utility vehicles (SUV).

The "component", introduced in June last year, had been Rs.15,000 per car with engine capacity below 2,000 cc, and Rs.20,000 for each car with larger engine capacity. Now the finance minister has brought down the "component" on the larger cars and SUVs to Rs.15,000 too. 
Sunita Narain, director of the Center for Science and Environment, criticized Mukherjee’s move, and said this would "give a fillip to SUVs that pollute the air far worse than smaller cars do". 
The government has also reduced the excise duty on petrol driven trucks from 20% to 8% "to equate the duty with similar vehicles run on diesel”.
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