SIAM urges Government to retain excise on small cars at 10 per cent
11.1.2011 (UNI) The country's apex auto body, Society of Indian Automobile Manufacturers (SIAM) urged the government to retain the excise duty levied on small cars at the current level of 10 per cent.
'The automobile industry has contributed 86 per cent more excise (to the government) than last year, accounting 26 per cent of the overall excise kitty and there is no need to roll back to the levels of the pre-stimulus package days,' SIAM President Pawan Genka told reporters through a video conference from Mumbai.
The healthy excise collection has been mainly driven by two factors, Dr Genka said, the first being the reduction of 2 per cent excise duty on small cars and second the growth rate of the overall auto industry.
'The industry has been encouraged by the way the government had supported it during the slowdown,' he said.
As part of the stimulus package provided by the government to overcome the 2008-09 slowdown, small cars were provided a reduction in excise duty to 8 per cent from 12 per cent earlier.
However, it was later increased to 10 per cent in last year's Budget.
On the other hand big cars, sports-utility vehicles and multi-utility vehicles currently attract 22 per cent excise duty.
'Any change in excise, whether an increase or decrease will be passed on to the consumers. Let it remain at 10 per cent and not increase to 12 per cent that was prevailing at the pre-stimulus package days,' Dr Genka said.
Asked about the wishlist of the auto industry ahead of the Budget, he said SIAM representatives have met Finance Ministry officials, without elaborating any further details.
'We have had discussions with the government and are quite encouraged by the response and we have been promised that there would be a fair look at the points that we have raised,' he said. UNI