Automobile industry fumes as Budget 2013 turns SUVs, imported cars costlier
On the import duty hike on luxury vehicles, he said the affluent class in India consumes imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vessels, he expressed confidence that "they will not mind paying a little more".
He also proposed to hike the import duty on motorcycles with engine capacity of 800 cc or more to 75 per cent.
However, excise duty on truck chassis is proposed to go down to 13 per cent from 14 per cent.
To boost manufacturing of environment-friendly vehicles, Chidambaram proposed to continue and extend the currently available concessions on specified parts of electric and hybrid vehicles till March 31, 2015.
In Budget for 2012-13, the excise duty on specified parts of hybrid vehicles was reduced to 6 per cent from 10 per cent.
Excise duty on lithium ion battery packs for electric or hybrid vehicles was also cut to 6 per cent from 10 per cent.
Besides, the full exemption from basic customs duty and special CVD with concessional excise duty or CVD of 6 per cent on some parts of hybrid vehicles was extended to specified additional items and lithium ion batteries imported to make battery packs for electric or hybrid vehicle.
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