Budget 2007-2008 and Indian Automotive Industry
February 28, 2007 – 2:44 pm by Banwari Lal SharmaNo excise duty cuts! Means, no chances of reduction in car prices.
Complete Excise-duty exemption on Bio-diesel. Encouraging use of Bio-Diesel in India.
National Highway Development programme gets Rs 2650 crore more. Better roads.
Central Sales Tax is 3% now. Some relief in terms of price reduction.
Ad valorem duty on petrol and diesel to be reduced to 6% from existing 8%. Some relief might be there in fuel prices/>
Tax benefit on R&D extended for another five years. Innovations in technology will continue.
The biggest hope from this year’s budget was that Govt. may reduce excise duty on big cars from 24% to 16%. This hope diminished as Mr. Chidambaram refused to consider it. Though there are a couple of good news but there is nothing major! Guys, let’s start looking forward to next year’s budget. 