Much ahead of the upcoming Budget, Society of Indian Automobile Manufacturers has asked the Indian government to retain excise duty on small cars at the current level of 10 per cent, even though the automobile industry registered good growth this fiscal.
“The automobile industry contributed 86 per cent more excise (to the government) than last year, accounting 26 per cent of the overall excise kitty and there is no need to roll back to the levels of the pre-stimulus package days,” Society of Indian Automobile Manufacturers President Pawan Goenka said during a video conference in Mumbai.
To overcome the economic downturn of 2008-09, the government provided a stimulus package under which small cars enjoyed a reduction in excise duty to 8 per cent from 12 per cent. Later, it was increased to 10 per cent in last year’s Budget. Bigger cars including sports-utility vehicles and multi-utility vehicles attract 22 per cent excise duty.
“Any change in excise, whether an increase or decrease will be passed on to the consumers. Let it remain at 10 per cent and not increase to 12 per cent that was prevailing at the pre-stimulus package days,” Goenka said.
When asked about the wish-list of the auto industry ahead of the Budget 2011, he merely said SIAM representatives have met Finance Ministry officials without commenting on the details.
“We have had discussions with the government and are quite encouraged by the response and we have been promised that there would be a fair look at the points that we have raised,” Goenka said.