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Keeping in mind the sky rocketing fuel prices, the government has decided to put additional excise duty on large cars including sports utility vehicle and multi-utility vehicles. Now for these fuel guzzlers one will have to pay additional excise duty ranging between Rs15,000 to Rs20,000. The new duty structure will however not affect prices of small cars like WagonR, Santro, Alto, Maruti 800 or Tata Indica.
A specific duty of Rs15,000 will be imposed on MUVs and SUVs of engine capacity ranging from 1500cc to 1999cc and those with engine capacity of 2000 cc and above will attract an excise duty of Rs20,000. The new excise duty structure would hence imply that prices of Maruti SX4, Honda accord and Hyundai Verna among other cars will rise by Rs 15,000. On the other hand prices of Tata Safari, Sumo, Mahindra Scorpio and Bolero, including luxury cars like BMW and Mercedes will go up by Rs 20,000. The decision on the fuel guzzlers by the government comes shortly, after the price of petrol and diesel were raised by Rs 5 and Rs 3 respectively.
