Union finance minister Arun Jaitley has announced that the excise duty reduction by the previous UPA government has been extended till the end of this calendar year.
This comes as a relief since the excise duty reduction presented in the interim budget was only valid till June 30. Excise duty had been reduced by 8% from 12% on motorcycles+scooters, small cars and commercial vehicles. On SUVs, the duty was reduced to 24% from 30% while on mid-size cars it was reduced to 20% from 24%, and on larger cars it was reduced to 24% from 27%.
Car manufacturers are optimistic that this decision will help boost the slow moving automotive market. Also, those looking to buy a new vehicle need not hurry, since the prices quoted are here to stay.