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Old 28th February 2013, 13:27   #16
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

5% of a lakh is 5000 so for a 10 lakh SUV, does it mean the raise is around 50,000. I guess overall cost is thus going to jump a lakh more for every SUV.
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Old 28th February 2013, 13:27   #17
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

What is goverment's definition of SUV? How does the goverment distinguish between an SUV and a crossover?

Do Duster and Ecosport fall in that category? If so, the goverment has killed this (most practical) segment already! And is an Aria with 4WD and 7 seats not classified as SUV just because it does not look butch?
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Old 28th February 2013, 13:28   #18
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by zalaps View Post
What is the definition of SUV as per Govt?
- Any engine capacity?
- Any driving mechanism (4*4/ 4*2)?
- Any seating capacity?
- Any fuel options?
- Any dimensions?
Precisely my question too. How would you define an SUV? If the Yeti, the Thar and the Gypsy are SUVs, there are cars longer and wider than them which, in the FM's language, occupy more parking and road space.
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Old 28th February 2013, 13:31   #19
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by zalaps View Post
What is the definition of SUV as per Govt?
- Any engine capacity?
- Any driving mechanism (4*4/ 4*2)?
- Any seating capacity?
- Any fuel options?
- Any dimensions?
I believe the main criteria is the engine capacity being above 2000 CC. There must be other criteria as well (as per the points you have mentioned). Someone more knowledgeable can enlighten us on that.
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Old 28th February 2013, 13:38   #20
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Auto industry has been a perennial milch cow for successive governments and this budget is no exception.
If SUV's are big, burly, heavy, occupy more space and potentially cause greater road damage ; what about trucks & buses?
Why no penalty for the acute overloading of M&HCV's who do much more damage to the road surface, and occupy far greater real estate than any Passenger Vehicle (PV) is capable of?
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Old 28th February 2013, 13:44   #21
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by jessie007 View Post
I believe the main criteria is the engine capacity being above 2000 CC. There must be other criteria as well (as per the points you have mentioned). Someone more knowledgeable can enlighten us on that.
I think the criteria may very well be.

a) > 4 m Length
b) < 8 seating Capacity
c) above 1500 CC engine (Remember 27% Duty was for engines above 2000 CC)
d) Body on wheel Design (Truck Style)

Govt has already clarified that any Taxi registered car will not have this additional duty.

On the above criteria all the vehicles including Scorpio, Bolero, Safari, Captiva, Fortunner, CRV, XUV5OO, Innova,Yeti will fall.

Cars like Ertiga, Evalia, Duster and to be launched cars like Ecosport and Enjoy would escape it if the above criteria is applied.
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Old 28th February 2013, 13:46   #22
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by n.devdath View Post
Precisely my question too. How would you define an SUV? If the Yeti, the Thar and the Gypsy are SUVs, there are cars longer and wider than them which, in the FM's language, occupy more parking and road space.
Quote:
Originally Posted by jessie007 View Post
I believe the main criteria is the engine capacity being above 2000 CC. There must be other criteria as well (as per the points you have mentioned). Someone more knowledgeable can enlighten us on that.
Something I found within forum http://www.team-bhp.com/forum/indian...on-system.html (SIAM's new vehicle classification system)

These are SIAM specification and not to be confused with Govt ones. But there is no any category called SUV?
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Old 28th February 2013, 13:46   #23
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

OT from this thread, The budget 2013 makes aspiring bikers to buy their SBK's even more expensive. Customs duties have been increased by 15%, which means a cheapest SBK would now be north of 13L OTR. Super Sports category will get to be even more expensive and would not be surprised if the R-1's, Hayabusa's & their equivalents being priced nearing 20L OTR
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Old 28th February 2013, 13:47   #24
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Why am I not surprised? Every year these corrupt and contemptible clowns seek to address the budget deficit by increasing revenue from direct taxes. Every year the average middle class Indian has a greater tax burden and it's based on retarded rationales like this.
Additional road space??? Why not start by clearing up the millions of illegal encroachment on our city roads? See how much space that will free up. But they'll never do that, because then where will their vote banks go?
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Old 28th February 2013, 13:49   #25
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

I dont understand, why is the government increasing these taxes when they should be lowering them to encourage growth and purchasing?
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Old 28th February 2013, 13:50   #26
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Default re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

1) It is an OK move. Something has to be done to access more revenues. So tax the top end fine.

2) I think this will impact the Imported vehicles more than the local one where the ED increase is 3%.

3) ON A LIGHTER NOTE:
SO NOW WE WILL KNOW FOR SURE IF THE ARIA, DUSTER, ECOSPORT ETC CROSSOVERS are MUV or SUV for sure. If this is only for SUV and no MUV then those vehicles paying the TAX are SUV for sure and the rest MUV. We can revise all definations and views accordingly. Being an ARIA 4X4 have often had to argue that it is an SUV not an MUV - atleast to satisfy my personal ego. This will define the path for all.
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Old 28th February 2013, 13:51   #27
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The Excise duty increase on SUV has been hiked from 27% to 30% I hope the admin checks the lead and corrects it. They do correct most threads with false information. By the way increase in this segment was expected and its not in the right direction. This is so because a person who is buying a car above 15 lacs really does not care about a small increase. Many may disagree here but then do compare the prices of vehicles in india and abroad. Most of these vehicles are out of the category of value for money. A Fortuner easily attracts accessories worth more than 50000 specially when the dealer makes the vehicle available immediately.
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Old 28th February 2013, 13:59   #28
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Again there is no clarity on what an SUV is -In fact as some one pointed out, ARAI has no classification like "SUV". I think I understand what our beloved FM had in mind when he spoke about SUV - Fortuner, Endevour etc but without a proper classification, we are in the dark. Typical of all Government announcements.
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Old 28th February 2013, 14:01   #29
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

I found only two reference to automotive taxation in his speech :

" 158. To encourage manufacture of environment-friendly vehicles, I propose to extend the period of concession now available for specified parts of electric and hybrid vehicles upto 31.3.2015.


174. SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 percent to 30 percent. However, the increase will not apply to SUVs registered as taxis."
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Old 28th February 2013, 14:06   #30
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by ACM View Post
1) It is an OK move. Something has to be done to access more revenues. So tax the top end fine.

2) I think this will impact the Imported vehicles more than the local one where the ED increase is 3%.

3) ON A LIGHTER NOTE:
SO NOW WE WILL KNOW FOR SURE IF THE ARIA, DUSTER, ECOSPORT ETC CROSSOVERS are MUV or SUV for sure. If this is only for SUV and no MUV then those vehicles paying the TAX are SUV for sure and the rest MUV. We can revise all definations and views accordingly. Being an ARIA 4X4 have often had to argue that it is an SUV not an MUV - atleast to satisfy my personal ego. This will define the path for all.

I think the FM was quite clear, all personal use SUVs will have an excise rate hike of 3% and those registered as taxi won't have this hike, so theoretically the hike should apply to scorpio, xylo, bolero, safari, sumo,ertiga, innova etc.

Those compact SUVs may not fall under this category as they fall in vehicles under 4 meter category having a lower excise duty.

I think this along with custom duty hike on imported SUVs is a step in the right direction as they have spared the small car segment. He has also spared the D segment sedans from any duty hike. There is limited headroom to increase taxes and he has done the right thing.


PS: Just heard Pawan Goenka of M&M, criteria of SUV for excies duty of 30% is 170 mm ground clearance! So all suv/muvs will be in this category, except may be sub 4 meter ones, or there will be a new category created in India, sub 4 m compact suv like vehicles with sub 170 mm GC!

Last edited by rock75 : 28th February 2013 at 14:26.
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