Excise duty hiked for vehicles above 1500 cc!

aaggoswami · 13th June 2008, 22:09

This is being already discussed:
http://www.team-bhp.com/forum/indian...-vehicles.html

As for the topic, I was expecting something like this after the fuel hike. If they are ready to tax us like Hitler on every liter of fuel, they can easily go ahead and do this.

SumitB · 13th June 2008, 22:11

Quote:

Originally Posted by diabloo

NHC just manages to beat this hike, since its cc is 1497 !!!

That is just amazing. Will the NHC now be almost at par with the SX4 as the SX4 will attract a hike of 15000.00?

aaggoswami · 13th June 2008, 22:18

Those affected will be SX4, Verna petrol, Fiesta 1.6 and Aveo 1.6, Logan 1.6 petrol, Chevrolet optra 1.6.

Can we have a rule limit like for a certain period of time, the rules about the excise wont change ?

SumitB · 13th June 2008, 22:46

Quote:

Originally Posted by khan_sultan

mmmmmm.... would this also increase the prices of used cars?

As we all know that prices of new cars do determine prices to a certain extent in the 2nd hand car market. So there should be a marginal price rise in the 2nd hand car market also.

adityamunshi · 13th June 2008, 22:59

This was expected.

Now im waiting for the state govt. to do something like this. Going by their past record, its going to be much worse.

Imagine, what the party which into power will do if UPA can do this during election year.

SumitB · 13th June 2008, 23:06

Realistically, I do agree that the prices of petrol and diesel in India is still on the lower side, but that said, I also believe that if the govt. is going to raise prices, then it should also raise the price of kerosine, even if it does so by 1 rupee. That way, we can say that okay, the oil companies was bleeding and so this had to happen. But by raising the prices of petrol, diesel and LPG and now this excise duty hike on larger cars and at the same time excluding kerosine, and smaller cars, the govt. is demonstrating nothing but an example of Vote Bank Politics. If the law is to be applied, it has to be done to all. They cannot exclude a certain group of people. Thats gross injustice.

FlyingSpur · 13th June 2008, 23:08

I think they should strip and parade us all naked and take whatever little money we have left.

Now for the more meaningful stuff : Is this with immediate effect? A verna Petrol is 1.6L right. That car was being considered. This does not sound good w.r.t. the car-buying decision. What's the engine capacity of the SX4 ?

SumitB · 13th June 2008, 23:13

/quote
I think they should strip and parade us all naked and take whatever little money we have left.
quote/

Even then, the govt. will tax us and term it as Entertainment Tax.

The raise in excise and the cut in customs duty for the flat iron is with immediate effect. However, if you were to book a the Verna tomorrow and get it delivered by Sunday, then chances are that you will get the old prices. The car companies should in theory should be paying excise to the govt. when a vehicle leaves the factory. As such, the dealer's stock should be on the old excise rate.

dadu · 14th June 2008, 10:20

I agree with snaronikar here, they just keep increasing one thing or the other, why havent they thought about optimizing their expenses in running the country.

Quote:

Originally Posted by snaronikar

All the news channels are reporting that the excise duty on cars are up. The cars with 1500 cc is up by Rs.15,000 and for 2000 CC and above the excise duty is up by Rs.20,000. So guys who are planning to buy the cars be cautioned and surprised for a new price. Dunno what FM is upto these days. Already inflation is up, to 8.75% for week ending May 31. The prices of essential commodities are already soaring and now this...Our politicians does not want Aam Aadmi to leave peacefully.

musicmanaman · 14th June 2008, 10:31

Will this effect people who have bought second hand cars above 1500cc?

Ever since I have bought the Amby Avigo Petrol 1800 cc, fule prices have gone up, and now this, I hope I'm not effected by this rise, since I bought second hand.

SumitB · 14th June 2008, 10:50

Quote:

Originally Posted by musicmanaman

Will this effect people who have bought second hand cars above 1500cc?

Ever since I have bought the Amby Avigo Petrol 1800 cc, fule prices have gone up, and now this, I hope I'm not effected by this rise, since I bought second hand.

Since you already bought the Amby, why will you be affected?

DCEite · 14th June 2008, 10:58

Good decision.
Atleast if you look at it from the point of view of rising fuel costs and demand for fossil fuels increasing exponentially. The intent is to deter people from buying high end cars which can help in controlling pollution, traffic chaos, and saving fuel.
The intent is good, but the actual results will be negligible. A 15k increase is negligible for someone having a budget of ~8 lacs.

SumitB · 14th June 2008, 11:18

Quote:

Originally Posted by DCEite

The intent is good, but the actual results will be negligible. A 15k increase is negligible for someone having a budget of ~8 lacs.

I would beg to differ with you here! The intent is not at all good. The intent here is to please the Left parties which is not at all good for the country! As per estimates, the govt. is set to gain an additional 500 crores in its tax collection after this excise hike. This hike is done to balance the losses the govt. will have to suffer after the reduction in the customs duty of crude. What the govt. is doing is wrong and there cannot be two ways about it. They should have also considered a raise in the prices of kerosine, even if they did it by 50 paise. That way, we could have said that okay, since the losses were too huge, they raised the prices for all petroleum products! On the one had you shield your vote bank and on the other hand you penalise the working class! Thats gross injustice.

mjothi · 14th June 2008, 11:34

In common man's opinion, this is good move. Why? Govt is trying to reduce the fuel consumption for more powered vehicles. Its something like promoting small cars and hence higher fuel efficiency.
Anyway, due to the fuel prices these segment would by itself had some dent. And this would be a added effect to it.
Personally it should have been only for vehicle that use most subsidized fuel - Diesel

zenx · 14th June 2008, 11:38

I kinda agree with DCEite. While personally, this is the final nail in my Safari-dreams coffin (esp with the huge road tax in Bangalore, and the insurance), overall its not a bad move. 15-20k is not that much for someone spending 8-10L on a vehicle, and barrieirs to private vehicle ownership - especially larger ones - can be kept high. In Singapore, for instance, one needs to procure a Certificate of Entitlement before one can buy a car, and the taxes are high too, from what I hear.

Of course, in parallel, public transport needs to get better. In Bangalore, at least, its gone up a couple of notches for sure - though one could argue that its "not quite there".

Enthusiasts will, one way or the other, continue to drive, despite costs. Sales related to certain cars being status symbols and large vehicles being used as regular commuter options will reduce.

In any case, I'd love to drive a Beemer or a Porsche, but cannot. So, one more off the list. So, I'm looking at this (for health reasons too

).

13th June 2008, 22:09	#16
aaggoswami Senior - BHPian Join Date: May 2007 Location: Vadodara Posts: 4,982 Thanked: 2,931 Times	This is being already discussed: http://www.team-bhp.com/forum/indian...-vehicles.html As for the topic, I was expecting something like this after the fuel hike. If they are ready to tax us like Hitler on every liter of fuel, they can easily go ahead and do this.
	() Thanks

13th June 2008, 22:18	#18
aaggoswami Senior - BHPian Join Date: May 2007 Location: Vadodara Posts: 4,982 Thanked: 2,931 Times	Those affected will be SX4, Verna petrol, Fiesta 1.6 and Aveo 1.6, Logan 1.6 petrol, Chevrolet optra 1.6. Can we have a rule limit like for a certain period of time, the rules about the excise wont change ?
	() Thanks

13th June 2008, 22:59	#20
adityamunshi BHPian Join Date: May 2007 Location: Baroda Posts: 771 Thanked: 6 Times	This was expected. Now im waiting for the state govt. to do something like this. Going by their past record, its going to be much worse. Imagine, what the party which into power will do if UPA can do this during election year.
	() Thanks

13th June 2008, 23:06	#21
SumitB BHPian Join Date: Jan 2007 Location: Shillong Posts: 986 Thanked: 263 Times	Realistically, I do agree that the prices of petrol and diesel in India is still on the lower side, but that said, I also believe that if the govt. is going to raise prices, then it should also raise the price of kerosine, even if it does so by 1 rupee. That way, we can say that okay, the oil companies was bleeding and so this had to happen. But by raising the prices of petrol, diesel and LPG and now this excise duty hike on larger cars and at the same time excluding kerosine, and smaller cars, the govt. is demonstrating nothing but an example of Vote Bank Politics. If the law is to be applied, it has to be done to all. They cannot exclude a certain group of people. Thats gross injustice.
	() Thanks

13th June 2008, 23:08	#22
FlyingSpur Senior - BHPian Join Date: Dec 2007 Location: Bay Area, CA Posts: 3,934 Thanked: 1,422 Times View My Garage	I think they should strip and parade us all naked and take whatever little money we have left. Now for the more meaningful stuff : Is this with immediate effect? A verna Petrol is 1.6L right. That car was being considered. This does not sound good w.r.t. the car-buying decision. What's the engine capacity of the SX4 ?
	() Thanks

13th June 2008, 23:13	#23
SumitB BHPian Join Date: Jan 2007 Location: Shillong Posts: 986 Thanked: 263 Times	/quote I think they should strip and parade us all naked and take whatever little money we have left. quote/ Even then, the govt. will tax us and term it as Entertainment Tax. The raise in excise and the cut in customs duty for the flat iron is with immediate effect. However, if you were to book a the Verna tomorrow and get it delivered by Sunday, then chances are that you will get the old prices. The car companies should in theory should be paying excise to the govt. when a vehicle leaves the factory. As such, the dealer's stock should be on the old excise rate. Last edited by SumitB : 13th June 2008 at 23:15.
	() Thanks

14th June 2008, 10:31	#25
musicmanaman BHPian Join Date: Nov 2006 Location: kolkata Posts: 927 Thanked: 25 Times	Will this effect people who have bought second hand cars above 1500cc? Ever since I have bought the Amby Avigo Petrol 1800 cc, fule prices have gone up, and now this, I hope I'm not effected by this rise, since I bought second hand.
	() Thanks

14th June 2008, 10:58	#27
DCEite Senior - BHPian Join Date: Sep 2004 Location: NCR Posts: 3,418 Thanked: 2,571 Times	Good decision. Atleast if you look at it from the point of view of rising fuel costs and demand for fossil fuels increasing exponentially. The intent is to deter people from buying high end cars which can help in controlling pollution, traffic chaos, and saving fuel. The intent is good, but the actual results will be negligible. A 15k increase is negligible for someone having a budget of ~8 lacs.
	() Thanks

14th June 2008, 11:34	#29
mjothi Senior - BHPian Join Date: Dec 2007 Location: Bangalore Posts: 3,287 Thanked: 231 Times View My Garage	In common man's opinion, this is good move. Why? Govt is trying to reduce the fuel consumption for more powered vehicles. Its something like promoting small cars and hence higher fuel efficiency. Anyway, due to the fuel prices these segment would by itself had some dent. And this would be a added effect to it. Personally it should have been only for vehicle that use most subsidized fuel - Diesel
	() Thanks

14th June 2008, 11:38	#30
zenx Senior - BHPian Join Date: Oct 2004 Location: Bangalore Posts: 1,161 Thanked: 158 Times View My Garage	I kinda agree with DCEite. While personally, this is the final nail in my Safari-dreams coffin (esp with the huge road tax in Bangalore, and the insurance), overall its not a bad move. 15-20k is not that much for someone spending 8-10L on a vehicle, and barrieirs to private vehicle ownership - especially larger ones - can be kept high. In Singapore, for instance, one needs to procure a Certificate of Entitlement before one can buy a car, and the taxes are high too, from what I hear. Of course, in parallel, public transport needs to get better. In Bangalore, at least, its gone up a couple of notches for sure - though one could argue that its "not quite there". Enthusiasts will, one way or the other, continue to drive, despite costs. Sales related to certain cars being status symbols and large vehicles being used as regular commuter options will reduce. In any case, I'd love to drive a Beemer or a Porsche, but cannot. So, one more off the list. So, I'm looking at this (for health reasons too ).
	() Thanks