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Old 28th February 2013, 14:24   #31
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

But higher duty will not be applicable to SUVs registered as taxis.

The excise duty on motorcycles with engine capacity of 800 cc or more will go up by 60-75 per cent. !!!!

:(

Any idea what is the current duty for bikes?

Quote:
Originally Posted by swiftnfurious View Post
What I see from multiple sources is "... taxes increased from 27% to 30%". So you might want to get that corrected after checking. I also see a clause that this is for "Indian made" SUVs! Looks quite anti-Indian manufacturers while SUVs either brought in as CKD / CBU evades the tax.

Edit:: Another clause was this duty is applicable ONLY for non-taxi SUVs. So should we expect the hike is for MPV / MUVs as well?
No, for even Tatas and MM is what I read.

And
Quote:
Chidambaram imposed 100 pc tax on high-end vehicles, 60 pc on imported bikes above 800 cc, 25 pc tax on yachts

Last edited by jkdas : 28th February 2013 at 14:30.
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Old 28th February 2013, 14:28   #32
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Smile Taxi and Non-taxi business

Besides the issue around definition of SUV, having separate tax slabs for taxi and non taxi would imply having to manufacture separate products (possibly with different labels, like dzire and dzire tour) for personal and commercial segments. This is because ED is applicable when the vehicle leaves the factory, hence it cannot be dependent on the intention of the end customer. It would imply more complication in maintaining inventory at the dealer's end (since he would have to maintain both)

The ruling would also come in the way of transferring a vehicle from one to the other.

It may also mean some people will start sporting yellow plates, but use the vehicles for personal purpose
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Old 28th February 2013, 14:31   #33
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Default Re: Taxi and Non-taxi business

Quote:
Originally Posted by aroop View Post
It may also mean some people will start sporting yellow plates, but use the vehicles for personal purpose
May not happen - I think all states have a tourist permit tax that is to be paid which in all probability is more than this 3% hike. Thats why you will see some operators using individual reg cars also as tourist cars - not the other way
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Old 28th February 2013, 14:45   #34
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by rock75 View Post
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!
Errr ... the FIAT Linea has a ground clearance of 185mm. Now, is that an SUV?? I am not sure whether the ground clearance criteria alone is enough, there must be something else too!
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Old 28th February 2013, 14:53   #35
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by ACM View Post
1)
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.
Again on a lighter note (no offence to owners)

A certain company knows which one is the 'REAL SUV'..
Maybe they should tell the government.
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Old 28th February 2013, 14:55   #36
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

@ Kiloalpha,

Nope, Linea will come in sedan category, there must be some other criteria. may be number of seats, etc. but I guess there is no differentiation between MUVs and SUVs for excise duty far as personal use goes. The operative word is Utility vehicle, whether sports or multi or Life utility a la ertiga!

Since Pawan Goenka is a senior auto industry guy, he surely isn't talking out of hat. I think for sedans the duty is 24% (including linea)and for SUVs it was 27% and now raised to 30%

Last edited by rock75 : 28th February 2013 at 14:58.
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Old 28th February 2013, 14:57   #37
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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.
I'm not so sure it's an "ok move". Your statement is based on the assumption that SUVs are only bought by the rich, but we don't know what 'SUV' means, specifically. If it's an all-encompassing definition that includes Ertigas, Xylos, Arias, Innovas, Scorpios and the like, then these are fairly middle-class vehicles. Where's the justification to tax them further? Because, as the FM said, they take up more space? That's just nonsense. I can show you a ton of sedans that are longer than Xylos, Scorpios, and Ertigas.

Also, your statement's quite socialist. Remember one thing: you cannot tax the poor into wealth by taxing the wealthy into poverty. I don't qualify as "top end" by any stretch of imagination, but I'll bet my bottom dollar that if they want to "access more revenue" they need to address the leakages instead of raising taxes every year.
Preventing scams like 2G/3G would add tens of thousands of crores every year to the exchequer. Likewise, mopping up some of the EXTRAVAGANT sops all our babus are entitled to will add a few thousand crores.

I hope I see the day when there's a budget that promises to plug exchequer leakages by taking a more progressive approach rather than this regressive nonsense we're subjected to every year.
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Old 28th February 2013, 15:04   #38
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by tachobells View Post
Again on a lighter note (no offence to owners)

A certain company knows which one is the 'REAL SUV'..
Maybe they should tell the government.
Yep So now we have only the Safari and the Thar among the Indian Born.

OK lets not go too much OT on a ligher note.

Presently SUV/ MUV category is larger than the Sedan category in India and is also faster growing.

GHOSTRIDER:
In general a Hatch of a company would be cheaper than the sedan or the SUV from the same company and similarly an SUV from a specific company would be more expensive and less fuel effecient than sedans and hatch of the same brand. Yep since we are not talking of preowned vehicles the fact is that most people who go for SUV / MUV can actually make do with a hatch or a sedan that is cheaper and more fuel effecienty for most of the applications to which a person puts the car for.

To me for example in my own usage all the reasons why I go for an SUV are more "Want" rather than "Need" related especially considering that I live in a nuclear family and rarely have we ever crossed 3/4 let alone 5 people in the same vehicle. Though the reason of road space/ footprint given by the FM is mad. The logic of taxing the top end is valid in my view.

That said there are exceptions to every majority take.

Last edited by ACM : 28th February 2013 at 15:14.
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Old 28th February 2013, 15:06   #39
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by KiloAlpha View Post
Errr ... the FIAT Linea has a ground clearance of 185mm. Now, is that an SUV?? I am not sure whether the ground clearance criteria alone is enough, there must be something else too!
I agree completely. Ground clearance in isolation cannot be a sole basis for determination of definition of a SUV. I second a previous member's thought of including aspects about engine capacity etc to be considered in this respect. And I am sincerely hoping they do especially since I am looking forward for the Ford Ecosport launch with pricing details. I have read theories/reasons for delay of launch to be some expected exemptions from to Automotive sector from this budget. Quite frankly I have not seen anything to that effect.
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Old 28th February 2013, 15:13   #40
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

So the current duty structure on cars is this I think :

60% Customs Duty (so called Basic Duty) (Chargeable on CIF Value of car)
32% Additional Duty (Chargeable on CIF Value + Basic Duty)
4% Special Additional Duty (Chargeable on CIF Value + Basic Duty+Additional Duty)
3% Cess (Chargeable on Basic Duty+Additional Duty+Special Additional Duty )

So a 100 Rupee CIF value car will cost 223.22 Rupees at a port in India.

This ofcourse excludes any Sales Tax, Road Tax, Inland Freight etc.

So increasing the basic customs duty by 15% will lead to a cascading effect as follows :

75% Customs Duty (so called Basic Duty) (Chargeable on CIF Value of car)
32% Additional Duty (Chargeable on CIF Value + Basic Duty)
4% Special Additional Duty (Chargeable on CIF Value + Basic Duty+Additional Duty)
3% Cess (Chargeable on Basic Duty+Additional Duty+Special Additional Duty )

So a 100 Rupee CIF value car will cost 245.84 Rupees at a port in India.

i.e. net net, imported (CBU) cars will become atleast 10 % more expensive on a pre VAT+Octroi basis.

I am also sure that all the manufacturers will take this opportunity to price in the falling rupee when they announce their new prices.

Jaguar must be thanking its stars that it has started assembling the 2.2 ltr XF here in India as this duty increase will take the XF 3.0 out of the reckoning for any midsize luxury buyer.

(Disclaimer : Above calculations are purely indicative and not accurate and/or exhaustive. )
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Old 28th February 2013, 15:13   #41
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by swiftnfurious View Post
Guess that takes the effective import duties to a 160% ! Last year the total duties accounted for about 135% and there is a straight 25% increase this year.

Edit:: Are the CBU sedans & hatches spared from this tax?
CBUs already pay more - 100% - and the CBU classification supersedes local tax norms, so no this will not apply to CBUs.

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?
Quote:
Originally Posted by rohanjf View Post
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?
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.
From last year's budget cars were classified as such - under 4 meters with under 1.2l petrol and 1.5l diesel engines, pay 12% excise (raised from 10%); cars exceeding 4 meters but with engine capacities under 1.5l, pay 24% excise (raised from 22%); and cars above 4 meters and with engines bigger than 1.5l, pay 27%.

By that classification, mini-SUVs like the Ecosport and Duster are safe. Buyers of vehicles like the Fortuner, CR-V etc. will now have to pay 3% more tax. The mid-level is vehicles like the Ertiga and Honda City. I also think the taxi caveat really only applies to MUV's such as the Innova and Xylo that clearly fall in the top category.

Considering everything else remains the same, 3% more tax on top SUVs IMO isn't a massively retrograde step.
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Old 28th February 2013, 15:16   #42
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by ghostrider View Post
Also, your statement's quite socialist. Remember one thing: you cannot tax the poor into wealth by taxing the wealthy into poverty. I don't qualify as "top end" by any stretch of imagination, but I'll bet my bottom dollar that if they want to "access more revenue" they need to address the leakages instead of raising taxes every year.
Actually literally speaking, in a country like India, you are already part of the top most 1.8% of the country if you can afford a car, let alone a 10 lakh SUV and that also includes commercial vehicles. So private vehicle owners will be almost top 1% of population.
Source : http://en.wikipedia.org/wiki/List_of...les_per_capita

But still, can understand your point regarding the politicians though.

Last edited by drpudhi : 28th February 2013 at 15:21.
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Old 28th February 2013, 15:17   #43
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Quote:
Originally Posted by StarScream View Post
I also think the taxi caveat really only applies to MUV's such as the Innova and Xylo that clearly fall in the top category.
The way the differential taxation for cabs works is that you have to register it as a yellow plate and then you get a refund. As such, the make/type of car doesnt really matter i.e. you will get the refund even if you register a Fortuner as a taxi.

Ofcourse the 7+1/6+1 seater etc rules still apply I think. So I dont think you get an excise rebate incase you register a 5 seater SUV as a cab. But I maybe wrong.

Last edited by n_aditya : 1st March 2013 at 09:01. Reason: quote tags fixed
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Old 28th February 2013, 15:20   #44
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

Guess now ARAI Pune should now kick into action and come out with points on what defines a SUV and how would you differentiate it from other cars. If left to GOI will not be surprised if they say Scorpio is a Car(Scorpio's Advertisement).
Would be interesting space to watch and check how the Boleros, Thar - DI Engines will be affected by this. Would the manufacturer be kind enough to absorb this 3% bump?
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Old 28th February 2013, 15:20   #45
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Default Re: Budget 2013: Excise Duty on SUVs increased 27% to 30%

This is what I found on Sirish Chandran's timeline about taxes on SUVs, on twitter.
Quote:
"Yes it is for all UVs. Just got it confirmed from Toyota Kirloskar” Duster,Innova,Ertiga,XUV prices all up

Last edited by swiftnfurious : 28th February 2013 at 15:24.
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