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Old 15th July 2008, 21:14   #16
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Default What is this "1.2 litre engine" tax benefit ?

I have read in many posts about car makers keeping engine displacements below 1.2l to qualify for tax benefit.. what exactly does this mean ?

Where can i find more info about automobile tax laws?
and last but not least why this 1.2 number ? Dosen't the government want people to drive powerful cars

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Old 15th July 2008, 21:54   #17
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I have always had the opinion that taxes/duties should be decided by the kpl (F.E.) of the vehicle in question.


Firstly there is the "pollution per kilometer" factor.
Secondly, general public (those who these cuts are supposed to benefit) always buys cars with higher F.E.
Enthusiasts and "the well to do", however, usually might not.
Thirdly, this would encourage manufacturers to launch more F.E. vehicles.

Vehicles like Civic Hybrid would benefit from such a setup.

Last edited by AbhiJ : 15th July 2008 at 21:57.
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Old 16th July 2008, 17:13   #18
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Hi there

We had a similar thread on the Custom duty of Vehicle in India for CKD or SKD or for vehicle below 4m of length. I am unable to find that thread. I would really appreciate if somebody could send me the link or some additional information on the topic.


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Old 17th July 2008, 18:41   #19
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Originally Posted by blip View Post
why this 1.2 number ? Dosen't the government want people to drive powerful cars
Simple, Governments intention is to encourage fuel economy cars & a car that uses less space on road. Most of the lower powered engines drinks less fuel.

if you opt for FE car & less than 4M length car, then you get tax discount.

e.g. Palio 1.6 drinks more fuel/KM than palio 1.2

Gets 1.6 drinks more than Swift 1.3 etc..
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