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D&B Budget Impact Analysis: Automobiles sector
Overall impact: Positive
Excise Duty
- Special Excise Duty (SED) of 8% on scooters
and motorcycles has been abolished. These items will now be charged at 16%
CENVAT.
- Subsequent to the collapsing of three SED rates
to a single rate of 16%, the SED on cars has been reduced to 16%. Total customs
duty on cars will now stand at 32% from the earlier 40%.
Excise Duty (%)
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Item
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2000-2001
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2001-2002
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Two Wheelers (< 75cc)
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16
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16
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Two Wheelers (>75cc)
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24
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16
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Motor Vehicle
(Up to 6 seater plus driver)
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40
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32
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Motor Vehicle
(7 to 12 seater plus driver)
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32
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32
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Motor Vehicle
(13 seater and above)
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16
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16
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Custom Duty
- Basic customs duty on used cars & motor
cycles and old multi-utility vehicles has been raised to 105%, which is three
times the current peak rate. Total duty applicable to these vehicles will
now be more than 180%. This measure has been announced to counter the threat
of cheap imports of these vehicles in the post QR regime.
Other Changes
- Authorized Service Stations for servicing of
vehicles including two wheelers brought under the purview of service tax
- Excise duty on High Speed Diesel has been restored
to normal CENVAT rate of 16% from the existing 12%.
- SED on motor spirit has been restored to the
previous rate of 16%, resulting in increase of effective duty from 16% to
32%
- Accelerated depreciation at the rate of 50%
will be available on new commercial vehicles for one year
Rediff-Dun & Bradstreet Budget Impact Analysis
Budget 2001
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