Maruti-Suzuki get another and this time it is from the Haryana government to cut down the rate of Central Sales Tax (CST) on inter state sale of Maruti-Suzuki cars from two per cent to one per cent from November 1, 2008.
The decision on the tax reduction was taken in the meeting led by Managing Director, S Nakanishi with Haryana Chief Minister, Bhupinder Singh Hooda and with approval stamp approval from the Council of Ministers will come into effect from November 1.
According to the reliable sources the one person cut, the state government will get a hit of nearly Rs 70 crore in terms of tax revenue till March 31, 2009. Out side Haryana, the company sells about 89 per cent of its vehicles.
In the past, this car manufacturer for all time has been given a 1 per cent rebate on CST by the state government in the past and following the 1 per cent reduction in CST from 3 to 2 per cent in this year's budget, a subsequent reduction was overdue. Other major car players like Hyundai and Ford also experience the similar treatment from Tamil Nadu government since 1999.