Commercial vehicle sector gets a budget booster
Finance Minister P. Chidambaram, on Thursday, increased the excise duty on sports utility vehicles (SUVs) and imported vehicles, including motorcycles above 800cc capacity, a move that has left the automobile industry fuming.
However, the proposal of the Petroleum and Natural Gas Ministry to impose Rs.80,000 surcharge on diesel SUVs did not find favour with the Finance Ministry.
However, the budget gave a big boost to the commercial vehicle segment, which has been languishing for quite some time. Under the JNNURM scheme, Rs.14,883 has been earmarked and most of it will go for purchase of buses by the State governments. Mr. Chidambaram announced hike in excise duty on SUVs to 30 per cent from 27 per cent, while all luxury vehicles will attract 100 per cent import duty as against 75 per cent earlier. Similarly, the basic customs duty on motorcycle with engine capacity of 800cc or more has been increased from 60 per cent to 75 per cent. The move is likely to make SUVs and imported vehicles far more expensive than their present price. The Finance Minister said he has provided Rs.14,883 crore to purchase around 10,000 buses under the city modernisation scheme. The purchases would be mostly made by hill States, he said. The commercial vehicle sector has faced a sharp slowdown during the recent months and this has come as a major relief to it. Bus sales during the first 10 months of 2012/13 have slipped 4.6 per cent to 36,609 units from 38,382 a year earlier. Sales of mini-buses were little changed flat at close to 39,000 units.
Keywords: Union Budget 2013-14, UPA government, P. Chidambaram
Actually it should have been made dearest (instead of dearer). This type of vehicles not only occupy roads but consume too much of fuel for single man joy. We cannot prohibit a person from enjoying luxury but, our country is not in such a position now.
Good idea increasing the duty on cigarettes and SUVs. I think the increase should of been higher on SUVs as most roads are not wide enough to accommodate them.
Precise Observations !should have covered provisions in respect of
Direct taxes !
Actually Govt. tries to tax much on premium class but the impact is so dilute that the wide base of middle class could not understand. Actually the people want that their all "Khatte Angoor" would be out of reach of the premium classes. Actually it is the more painful for the common people of not having something than having by others.
The expectations of Salaried employees on some relief to compensate for
the double digit inflation has been ignored by Mr. Chidambaram who has
presented working class friendly budgets in earlier years . Without any
change in the IT slabs, real tax incidence has gone up.
A tax credit of Rs. 2000/- has been given to people in income slab of 2-
5 lac. It means a person with annual income of say Rs. 1.98 lac will pay
income tax of Rs. 1800/-, while a person with higher income say 2.05 lac
will pay income tax of Rs. 500/- ( 2500/- less tax credit) I fail to see
the logic.
this is a most pathetic budjet please government take care of common man
There is no relief in Saving for all working employee, China is Manufacturing Mobile phones & we are using their products, Learn from china these basic growth & now imposing additional tax on mobiles.
! WOW great !
Tax credit of Rs.2000/- for tax payers in tax bracket of Rs. 2-5 lakh is just like a piece of bread for the hungry people.
Budget 2013-14 is not so good, not so bad....
As we see the rail budget one of the worst budget in this century, in
union budget There is no any way of progress is seeing, as totally dumb
budget, I'm not understanding the Union budget is presented by
P.Chidambram or any Nursery class student,Prime minister is well
knowledge about but why he is not suggesting to Our FM,Lack of
Communication gap in This Govt.
It is good to have fiscal deficit for 2013 - 2014 is managed to be at
4.8 per cent against last years 5.2 per cent
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