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Be ready to shell out Rs 20,000 more incase you are planning to buy an imported luxury car. This is because the Indian government has decided to levy an additional excise duty on fuel guzzling cars produced in India and this rule will also include in its fray all imported luxury cars such as Toyota's Camry and SUVs such as Honda's CR-V and Hyundai's Tucson, said an official from the Finance Ministry.
Speaking on this issue, Central Board of Excise and Custom (CBEC) member V Sridhar explained that the specific excise duty of Rs 15,000 and Rs 20,000 will also apply to imported cars because the Countervailing Duty (CVD) will also increase by a similar quantity. The countervailing duty has been designed to limit international trade and is slapped on imported goods to shield local producers.
At present, those importing luxury cars in India have to pay duties of around 110 per cent. But they will have to spend an extra Rs 15,000 to Rs 20,000 for the same depending upon the engine capacity of the vehicle they are purchasing. In the wake of spiraling oil prices, such a measure has been introduced by the Indian government to control the use of petrol in the country. Earlier, however, it was unclear whether imported luxury cars too came in the fray of this new government rule or not.
