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Tax waiver to the Automotive industry extended

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.