Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 13:52 IST

Duty on Large Cars Enhanced from 22 Per Cent to 24 Per Cent

Large cars currently attract excise duty depending on their engine capacity and length. While presenting the Union Budget 2012-13 in LokSabha today, the Finance Minister ShriPranab Mukherjee proposed to enhance the duty from 22 per cent to 24 per cent. In the case of cars that attract a mixed rate of duty of 22 per cent + Rs 15,000 per vehicle, he proposed to increase the duty and switch over to an ad valorem rate of 27 per cent.

DSM/MG/RS/41

Excise duty change on large cars alters levy structure, converting mixed rate into ad valorem. Excise duty on large cars was raised in the Union Budget proposals and cars previously subject to a mixed charge will have that mixed component replaced by a uniform ad valorem rate, with engine capacity and vehicle length remaining as the segmentation criteria for the levy.