Budget 2007-2008

shuvd · 20th February 2007, 17:01

@ Mods - Did not find any thread relating to this topic. If I have overlooked an existing thread please do the needful. Thanks.

The Budget is round the corner and what are the implications for us car nuts?
Are car prices coming down or going up? If there are some cuts, will the manufacturers pass it on to the buyers or make merry with the benefits? So, should we wait to buy a new car or "just do it" as they say? My friend is in the market for a new car and asked me about this.
Please advice guys and gals and thanks in advance

gutsy · 20th February 2007, 22:22

I don't think there will be cut on excise duty for small cars, as its already at 16%.

Seems that some category of Sedan may see a duty cut. Interesting to see would be the criteria for this cut. It could be length of the car or poser of the engine.

mithun · 21st February 2007, 05:56

But we can never reject the possibility of excise duty cuts for small cars since anything can be expected. And Govt. is very much interested in pushing up the auto-sector growth.

askicode · 21st February 2007, 09:41

Source: Buying a car? Wait for budget 2007 : union budget, 2007, cars, small cars, excise duty, cut : IBNLive.com : CNN-IBN

In the key proposals to the Pre budget memorandum, the industry has asked for a uniform excise duty of 16 per cent on all passenger vehicles, which means that while small cars may cost the same, mid size cars are expected see an 8 per cent excise cut.

However, since two months ago most auto companies increased car prices, the net effect be small cars becoming more expensive than previous year.

"Post-budget, the excise duty will reduce on cars and companies will most likely reduce the prices. Yet the prices after the budget wont be less than the ones given out in December 2006," said Tax Expert P S Jain.

cartech · 21st February 2007, 10:23

IMO duty for small cars( < 4M Length and < 1.2L ) will be 8% or 12%. Other cars duty will be 16%. Thus prices across all segments will come down. Obviously all discounts will disappear. There may be a redefinition of length of small car to 3.8 M. This will hit Getz/UVA.

shuvd · 21st February 2007, 11:20

Thanks guys! So, we should wait and watch then, eh? But what about cars above 1600cc and such. I mean the upper mid-size and the entry luxury segment. Will the price cuts be applicable here as well? And

shuvd · 21st February 2007, 17:36

And, what about the diesels and the so called "SUVs"?

rahul_intlad · 28th February 2007, 00:28

Budget 2007 expectations:

1>. Slash customs duty on completely built units (CBUs) by 10-15%
2>. Small cars[i.e. santro,maruti 800,indica,alto etc] excise duty reduced to 8% from present 16%.
3>. passenger cars excise duty reduced to 16% from present 24%
4>. UV's too to enjoy excise duty reduction to 16% from present 24%.
5> 2 and 3 wheelers to also have excise duty cut to 8% from present 16%.
6>. Custom duty on tyres to come down to 10% from present 12.5%.

7>. Custom duty on auto ancillaries to be made 10-8% from present 12.5%.
8>. CST on auto ancillaries to be made 3 % from present 4%.

depreciation
9>. Plant and machinery to be made 25% from present 15%
10>. Vehicles to be made 25% from present 15%

Source:
Icici research.

Eagerly waiting for the FM's speech.

higautham · 28th February 2007, 11:35

Finance minister announced the new budget. i missed it on tv. any hope for new car buyers..
http://www.lovepostcards.net/288100

)))))))))))))))

Equus · 28th February 2007, 11:49

rediff.com: Money: Live Commentary! Union Budget 2007-08

esteem_lover · 28th February 2007, 12:02

Roads: Allocation for National Highway Development programme to be stepped up from Rs 9955 crore to Rs 12600 crore.
Work on Golden Quadrilateral road project nearly complete. Considerable progress made on North-South, East-West corridor and is likely to be completed by 2009, says FM.

Joz · 28th February 2007, 12:16

Central Sales Tax reduced to 3% from 4%. To be phased out.

kkr2k2 · 28th February 2007, 12:38

Bio-diesel to be fully exempted from excise duty.

Wish to see bio-diesel available as easily as the regular diesel. Petro companies, what are waiting for, now that the excise duty is waived of.

cartech · 28th February 2007, 12:48

Just saw the budget telecast
Everything remains same. Excise etc. Except CST reduced by 1%

navdeep · 28th February 2007, 12:59

Tax exemption limit raised to Rs 1.1 lakh.
No change in service tax rate.
Ad valorem duty on petrol and diesel to be brought down from 8% to 6%.
Education cess on all taxes hiked to 3%.

20th February 2007, 17:01	#1
shuvd Senior - BHPian Join Date: Nov 2006 Location: Calcutta Posts: 1,081 Thanked: 7 Times View My Garage	Budget 2007-2008 @ Mods - Did not find any thread relating to this topic. If I have overlooked an existing thread please do the needful. Thanks. The Budget is round the corner and what are the implications for us car nuts? Are car prices coming down or going up? If there are some cuts, will the manufacturers pass it on to the buyers or make merry with the benefits? So, should we wait to buy a new car or "just do it" as they say? My friend is in the market for a new car and asked me about this. Please advice guys and gals and thanks in advance
	() Thanks

20th February 2007, 22:22	#2
gutsy BHPian Join Date: Jan 2005 Location: Internet Posts: 135 Thanked: 238 Times	I don't think there will be cut on excise duty for small cars, as its already at 16%. Seems that some category of Sedan may see a duty cut. Interesting to see would be the criteria for this cut. It could be length of the car or poser of the engine.
	() Thanks

21st February 2007, 05:56	#3
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	But we can never reject the possibility of excise duty cuts for small cars since anything can be expected. And Govt. is very much interested in pushing up the auto-sector growth.
	() Thanks

21st February 2007, 09:41	#4
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	Source: Buying a car? Wait for budget 2007 : union budget, 2007, cars, small cars, excise duty, cut : IBNLive.com : CNN-IBN In the key proposals to the Pre budget memorandum, the industry has asked for a uniform excise duty of 16 per cent on all passenger vehicles, which means that while small cars may cost the same, mid size cars are expected see an 8 per cent excise cut. However, since two months ago most auto companies increased car prices, the net effect be small cars becoming more expensive than previous year. "Post-budget, the excise duty will reduce on cars and companies will most likely reduce the prices. Yet the prices after the budget wont be less than the ones given out in December 2006," said Tax Expert P S Jain.
	() Thanks

21st February 2007, 10:23	#5
cartech BHPian Join Date: Jan 2007 Location: Mumbai Posts: 198 Thanked: Once	IMO duty for small cars( < 4M Length and < 1.2L ) will be 8% or 12%. Other cars duty will be 16%. Thus prices across all segments will come down. Obviously all discounts will disappear. There may be a redefinition of length of small car to 3.8 M. This will hit Getz/UVA.
	() Thanks

21st February 2007, 11:20	#6
shuvd Senior - BHPian Join Date: Nov 2006 Location: Calcutta Posts: 1,081 Thanked: 7 Times View My Garage	Thanks guys! So, we should wait and watch then, eh? But what about cars above 1600cc and such. I mean the upper mid-size and the entry luxury segment. Will the price cuts be applicable here as well? And
	() Thanks

21st February 2007, 17:36	#7
shuvd Senior - BHPian Join Date: Nov 2006 Location: Calcutta Posts: 1,081 Thanked: 7 Times View My Garage	And, what about the diesels and the so called "SUVs"?
	() Thanks

28th February 2007, 00:28	#8
rahul_intlad Senior - BHPian Join Date: Aug 2006 Location: Pune Posts: 1,579 Thanked: 4 Times	Budget 2007 expectations: 1>. Slash customs duty on completely built units (CBUs) by 10-15% 2>. Small cars[i.e. santro,maruti 800,indica,alto etc] excise duty reduced to 8% from present 16%. 3>. passenger cars excise duty reduced to 16% from present 24% 4>. UV's too to enjoy excise duty reduction to 16% from present 24%. 5> 2 and 3 wheelers to also have excise duty cut to 8% from present 16%. 6>. Custom duty on tyres to come down to 10% from present 12.5%. 7>. Custom duty on auto ancillaries to be made 10-8% from present 12.5%. 8>. CST on auto ancillaries to be made 3 % from present 4%. depreciation 9>. Plant and machinery to be made 25% from present 15% 10>. Vehicles to be made 25% from present 15% Source: Icici research. Eagerly waiting for the FM's speech. Last edited by rahul_intlad : 28th February 2007 at 00:37.
	() Thanks

28th February 2007, 11:35	#9
higautham BHPian Join Date: Oct 2006 Location: Trivandrum Posts: 95 Thanked: Once	Finance minister announced the new budget. i missed it on tv. any hope for new car buyers.. http://www.lovepostcards.net/288100 )))))))))))))))
	() Thanks

28th February 2007, 11:49	#10
Equus Senior - BHPian Join Date: Sep 2006 Location: Bangalore Posts: 1,123 Thanked: 423 Times	rediff.com: Money: Live Commentary! Union Budget 2007-08
	() Thanks

28th February 2007, 12:02	#11
esteem_lover Senior - BHPian Join Date: Jul 2006 Location: Madras/Py Posts: 7,556 Thanked: 502 Times View My Garage	Roads: Allocation for National Highway Development programme to be stepped up from Rs 9955 crore to Rs 12600 crore. Work on Golden Quadrilateral road project nearly complete. Considerable progress made on North-South, East-West corridor and is likely to be completed by 2009, says FM.
	() Thanks

28th February 2007, 12:16	#12
Joz BHPian Join Date: Jul 2005 Location: Dubai Posts: 247 Thanked: 2 Times	Central Sales Tax reduced to 3% from 4%. To be phased out.
	() Thanks

28th February 2007, 12:38	#13
kkr2k2 Senior - BHPian Join Date: Sep 2006 Location: Melbourne, Hyd Posts: 1,294 Thanked: 66 Times View My Garage	Bio-diesel to be fully exempted from excise duty. Wish to see bio-diesel available as easily as the regular diesel. Petro companies, what are waiting for, now that the excise duty is waived of.
	() Thanks

28th February 2007, 12:48	#14
cartech BHPian Join Date: Jan 2007 Location: Mumbai Posts: 198 Thanked: Once	Just saw the budget telecast Everything remains same. Excise etc. Except CST reduced by 1%
	() Thanks

28th February 2007, 12:59	#15
navdeep BHPian Join Date: Sep 2006 Location: Pune Posts: 892 Thanked: 4 Times	Tax exemption limit raised to Rs 1.1 lakh. No change in service tax rate. Ad valorem duty on petrol and diesel to be brought down from 8% to 6%. Education cess on all taxes hiked to 3%. Last edited by navdeep : 28th February 2007 at 13:07.
	() Thanks