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        News and Press Release

        Impact of Lower Excise Duty on Industry

        March 19, 2015

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        The production growth rate of Automobile Industry during the period April 2014 to  February 2015 compared to the same period of last year is as under: 

         

        April-February 2014

        April-February 2015

        Growth%

        Passenger Vehicles

        2,815,563

        2,927,447

        3.97

        Commercial Vehicles

        636,923

        629,905

        -1.10

        Three Wheelers

        763,338

        867,888

        13.70

        Two Wheelers

        15,429,731

        17,042,863

        10.45

        Total of All Categories

        19,645,555

        21,468,103

        9.28

         The Government is taking steps to improve growth through policies like the JNNURM and support for improving exports. The vehicles manufacturers are launching newer and improved models to boost demand. 

        Excise duty was reduced w.e.f. February, 2014 to December, 2014 and thereafter the earlier higher duty level has been restored. Almost all the sectors had shown improvement in production during the lower excise duty phase and the previous negative trend was reversed. Comparative data of production during the period January-December, 2013 and January-December, 2014 is as under: 

         

        January-December 2013

        January-December 2014

        Growth%

        Passenger Vehicles

        3,155,694

        3,158,215

        0.08

        Commercial Vehicles

        742,731

        681,945

        -8.18

        Three Wheelers

        847,323

        937,879

        10.69

        Two Wheelers

        16,413,175

        18,490,931

        12.66

        Grand Total 

        21,158,923

        23,268,970

        9.97

        This information was given by the  Minister  of  State in the Ministry of  Heavy Industries and Public Enterprises Shri  G.M. Siddeshwara in reply to a written question in the Rajya Sabha  today.

        Lower excise duty spurred temporary production growth in the automobile industry, reversing prior declines across multiple vehicle categories. Impact of a temporary reduction in excise duty on the automobile sector is described, with production statistics indicating that excise duty was reduced from February 2014 through December 2014 and subsequently reverted to the earlier higher level; during that reduced-duty interval most vehicle categories showed higher production and earlier negative trends were reversed, supported by comparative period data for passenger vehicles, commercial vehicles, three wheelers, two wheelers, and totals.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Lower excise duty spurred temporary production growth in the automobile industry, reversing prior declines across multiple vehicle categories.

                                Impact of a temporary reduction in excise duty on the automobile sector is described, with production statistics indicating that excise duty was reduced from February 2014 through December 2014 and subsequently reverted to the earlier higher level; during that reduced-duty interval most vehicle categories showed higher production and earlier negative trends were reversed, supported by comparative period data for passenger vehicles, commercial vehicles, three wheelers, two wheelers, and totals.





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                                ActsIncome Tax
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