[Abhi_Automobile]

Mods,

There is a lot of confusion here:

What classifies as 'large cars' as per govt is a little confusion. So, I don't really know which cars fall under which category. Can you guys clear the air by giving concrete and elaborate details?


Else, can somebody specifically tell me which 'new excise duty taxation category' does following cars fall under:

1. VW Jetta
2. Skoda Laura
3. Renault Fluence

[urajkumar]

Forgive me for ranting but having been a petrol head, depressing to hear that the Petrol-Diesel divide is getting even bigger! I was sure this was the right time to normalize the vast difference! As usual the Auto lobby have done thier job well.

If this trend continues, very soon diesel demand will shoot throught the roof! With the current energy scarcity, more generators are going to gobble tonnes of diesel as well! In Chennai last year, we already had couple of days when all bunks said they were out of Diesel & this trend is only going to increase!

This is a sad day us petrol heads. As usual we can only rant and live with all other injustice's which thrive & prevail in our system.

To all the diesel car owners: Cheers!

[GenuineOptimist]

Originally Posted by Wall-e

I think there is a mistake in this government release. Shouldn’t it be "petrol driven vehicles having length exceeding 4000mm and engine capacity exceeding 1200 cc" and not 1500 CC. So if thats a mistake then to summarize the following would be the changes which should be in effect from April 1?? or tonight??

No, the government clarification (even in another document released by CBEC )mentions that only >1500 CC petrol vehicles are 27%. Not >1200 CC.

So I guess even for petrol vehicles with >4000mm..

Till 1500 CC = 24%,
> 1500 CC = 27%.

CBEC document, items 284, 285: http://www.cbec.gov.in/ub1213/ce12-2012.pdf

[ethanhunt123]

From what we saw, large cars with length > 4000mm and engine >1500cc are 27% now. So all 3 now are large cars with 27% excise. Looks like my dream of buying a Laura TSi is down the drain - Diesel power will be the choice.

Unless Honda brings in that CRDi engine fast, dont think they can survive in India much longer.

[el lobo 6061]

Originally Posted by darkX

If a car costs marginally below 10L before the budget, it'll easily go beyond 10L and attract 15% road tax then. Am I right?

If the car marginally goes beyond 10 lac say by Rs. 1000 then it will attract 15% road tax.

Originally Posted by Abhi_Automobile

Else, can somebody specifically tell me which 'new excise duty taxation category' does following cars fall under:

1. VW Jetta
2. Skoda Laura
3. Renault Fluence

Here is what I have understood and would be 100% correct.

1. VW Jetta
Earlier 22%+ Rs. 15000 Now 27% Excise

2. Skoda Laura
Earlier 22%+ Rs. 15000 Now 27% Excise (Both Petrol & Diesel)

3. Renault Fluence
For Petrol
Earlier 22%+ Rs. 15000 Now 27% Excise

For Diesel since it is less than 1500CC
Earlier 22% Now 24% Excise

[CARDEEP]

It is not just buying cars that will be costly, but, maintaining (service & spares) & running them with be costly, courtesy hike in excise duty & service tax.

& the problem is not restricted to auto sector, but to all sectors. IMO the 2012/13 budget will increase inflation rather than controlling it. Believe me the impact sooner or later could be exponential... & the the govt is not trying a bit to pin down own expenditure, rather than making the mango people pay for voting/ not voting these fools to power .

[GenuineOptimist]

Originally Posted by Abhi_Automobile

Mods,

There is a lot of confusion here:

What classifies as 'large cars' as per govt is a little confusion. So, I don't really know which cars fall under which category. Can you guys clear the air by giving concrete and elaborate details?

I hope the below clears the confusion. The government has ignored the petrol cars less than 4000 mm but more than 1200cc category. I have no idea what % duty is on them.

[arvindmanju]

even tata motors have hiked the price after budget

Tata Motors to increase prices, on Excise Duty hike

Tata Motors has decided to increase the prices of its commercial vehicles and passenger vehicles, with immediate effect, proportionate to the increase in the corresponding excise duty announced in the Union Budget today.

[patil]

Hi Guys,
I dont understand why people here are not happy with the finance minister not imposing any additional tax on diesel cars alone. Well a car is a car and wheather its diesel or petrol driven. Considering my situation only I live in a small town where from the nearest railway station is 65 kms and the nearest airport is 250 kms. So I am compelled to travel by car most of the times and for this reason I use a diesel car now and definetely even if I upgrade I will opt for a diesel only.

So when the government is not providing infrastructure to small places and a middle class person with great difficulty buys a car why should he be made to pay through his nose when he wants to buy a diesel car. I pay income tax, service tax, VAT, etc., etc., and I dont get any facility and despite all that if I want to have the basic luxuory of using a car for personal transport for the reasons that I dont have a better option in the form of public transport why should I again pay extra. Is it to fund for the scams such as bofors, 3g, commonwealth games, etc., etc., or to fund the stupid government schemes such as NREGS, free power to the poor, ration, government hospitals, government schools, etc., etc., which we will never use.

When will the government teach the poor to earn their own livelihood and earn and stop them from living a parasitic life. How much does to government want to extract from the tax payer and fill their own pockets and feed the parasites. The poor works only to fulfill his basic necessities and when the government is providing everything free of cost why will he work. In fact the government wants the poor to get addicted to lazy life and depend on it for their basic necessities.

The tax payer and the middle class have become like a cane of sugar which inserted into to the juice extraction machine again and again and juice is extracted. We pay all kinds of tax and may be we pay almost 50% of our income towards tax and still get nothing in return and the so called poor who has no limit in giving birth to children gets to live a good life upto his respective standards.

God save the country and the tax payer and the middle class.

[rambo1o1]

Originally Posted by darkX

Does the state government road tax indirectly affect as well? In TamilNadu for instance, 10% and 15% road tax is applied for cars costing less than 10 lakhs and 10+ lakhs segments. If a car costs marginally below 10L before the budget, it'll easily go beyond 10L and attract 15% road tax then. Am I right?

Yes your right! The new fiesta AT top end,Vento diesel HL will now cost more on road because they will cross the 10L threshold! Thats just too bad!

[Abhi_Automobile]

Originally Posted by el lobo 6061

If the car marginally goes beyond 10 lac say by Rs. 1000 then it will attract 15% road tax.


Here is what I have understood and would be 100% correct.

1. VW Jetta
Earlier 22%+ Rs. 15000 Now 27% Excise

2. Skoda Laura
Earlier 22%+ Rs. 15000 Now 27% Excise (Both Petrol & Diesel)

3. Renault Fluence
For Petrol
Earlier 22%+ Rs. 15000 Now 27% Excise

For Diesel since it is less than 1500CC
Earlier 22% Now 24% Excise

Ok. So going by that explanation it should not include Fluence in the category as it has < 1500 cc engine. I still don't think it will sell in any better numbers but Renault is not under pressure to raise the price by 4% {27% - (22%+ 15k~= 23%)}. They only have to raise it by 2%.

Anyway, bottomline is, all this is better than a flat hike of 10%+ on ex-showroom.

[vinya_jag]

I feel, the government has done something that was in need at this hour. [Very political; not me]

Who all could have benefited from this budget?
1. Car companies and the Govt
2. General Public
3. Environment

General public is for sure going to spend a little more in terms of duty increase. And there is no alternative. The only way he could save some is by going diesel. So we are all headed the diesel way.

Govt for sure needs to look after the car companies, and foreign investments. Taxing diesel will surely bring down the growth. (No, people will not shift back towards petrol)
A country of a billion can only care about growth. We cannot care for patients dying of cancer. That is only for countries like Australia. India needs growth at all costs.

Environment: I guess we again cannot care for it now. More green house effect? But where is the ozone depleting? Not here. So we shouldn't care. Taxing diesel cars and subsidizing cleaner technology is again not going to work out in India at this time. We cannot slow down growth. And cannot even think of negative growth. Greener technology will only come once India sees a disaster. Not now.

[dkaile]

Toyota price increase- Etios P 11500 Etios D 13600 Liva P 9500 Liva D 11500 Altis P 39000 Altis D 26500 Innova 35K Fortuner 80K

[wilful]

Looks as if it is a thumbs up for the auto industry (of the diesel variety of course). It appears auto shares have moved northward. This link gives details --

Union Budget 2012-13: Car makers race ahead on friendly budget - The Times of India

[carboy]

Originally Posted by wilful

Already I reckon about 90% of auto-rickshaws are diesel - those noisy rattley contraptions.

Not in Bombay. All of them are CNG. Even before, they were petrol, I think - not diesel.