Govt announces tax cuts to boost economy

swami · 25th February 2009, 10:21

Quote:

Originally Posted by luky_13

Does this mean that Cars (and other automobiles) are going to get cheaper by 2% off the ex-showroom value (rather approximately)?

Nope.No "further" reduction in car duties. The 4% cut of December was supposed to expire on March 31st 2009. This has been extended for the next financial year. So, at least from a taxes perspective, no reason for car prices to increase on the 1st of April 2009.

The reduction in service tax rates is the bigger benefit for all citizens. Everything from loan processing charges to mobile bills will be affected by this. And if your car is on a company lease, lease rentals also will go down.

loving_alaap · 25th February 2009, 15:29

Even if the Tax is not directly related to car, it is related to all other parts / metals used in car.

But the thing is, Manufacturers have to pass on the benefits to the costumers. Other wise its of no use.

Red Liner · 25th February 2009, 15:37

These cuts do not materially impact car manufacturers to the extent of reducing prices across the board. For that to happen, excise duties should probably be cut more, and moreover the 20% special tax because of high fuel prices on MUV's and SUV's must go. Fuel prices are so low now, wonder why the Govt continues with that rule.

Long story short - only commercial vehicles will get cheaper. NOT passenger cars.

25th February 2009, 15:29	#17
loving_alaap BHPian Join Date: Sep 2007 Location: Ahmedabad Posts: 808 Thanked: 9 Times	Even if the Tax is not directly related to car, it is related to all other parts / metals used in car. But the thing is, Manufacturers have to pass on the benefits to the costumers. Other wise its of no use.
	() Thanks

25th February 2009, 15:37	#18
Red Liner Distinguished - BHPian Join Date: Aug 2006 Location: Bangalore Posts: 5,209 Thanked: 18,044 Times	These cuts do not materially impact car manufacturers to the extent of reducing prices across the board. For that to happen, excise duties should probably be cut more, and moreover the 20% special tax because of high fuel prices on MUV's and SUV's must go. Fuel prices are so low now, wonder why the Govt continues with that rule. Long story short - only commercial vehicles will get cheaper. NOT passenger cars.
	() Thanks