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Old 27th March 2012, 18:45   #1
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Default Rajasthan State Budget: Expensive Cars & Petrol get cheaper !

Rajasthan State Finance Budget declared yesterday had little reprieve for Automobile Industry with minor relief coming from tax relaxation in Petrol and Road Tax Relaxation for Luxury Cars.

Rajasthan Junta sighed a relief, albeit minor, from ever increasing costs of petrol in the state with government relaxing VAT on Petrol from 28% to 26% effecting a INR 1.06 relief in petrol costs for customers. The new prices were made effective immediately after budget session. It is to be noted that Rajasthan is one of the highest Taxing state for petrol currently and the state has been suffering major losses in revenues due to cheaper fuel in neighbouring states.

There was a minor relief for new car buyers too with Road Tax reduction from 10% to 8% for all commercial vehicles and luxury vehicles (costing > 10 Lac). I say minor relief as Excise Duty on same vehicles were hiked by 2% in central budget. It is therefor merely a negating effect for the aam junta which would have been actually grateful had the reduction in Road Tax declared for vehicles in 4-10 Lac range. It is a positive step, nonetheless.

There was also some relief for body manufacturers for commercial vehicles as VAT Tax is now abolished for these parts. This will bring down costs considerably for transporters as the commercial vehicle bodies will cost much less. It is to be noted that the announcement has absolutely no effect on body parts of Personal vehicles and 2-Wheelers which do not require custom body parts. So, No relief if you thought your next trip for repairs of your vehicle after crash were going to get cheaper.

All in all, a very mellow budget which tries to please commercial customers and transporters more than the personal customers. It seems the state government still believes that vehicles used as luxury (personal vehicles) must be taxed heavily and relief, if any, is only meant for commercial customers. BAD VISION...
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