The CBEC (central board of excise and custom) has confirmed that sedans like the Toyota Corolla Altis and the Maruti Suzuki SX4, will come beneath the 27% excise duty portion as a replacement for the 30% charge prearranged for SUVs (sports utility vehicles). The CBEC also stated that the Altis and SX4 come under the sedan class and not the SUV category, unlike Toyota Fortuner and Mahindra Scorpio.
The Finance Minister of India, P. Chidambaram stated that, SUVs take up more road and parking room, and are likely to attract more tax. He anticipated to boost the expurgate duty on SUVs to 30%, this is an increase when compared with the previous 27%. He also mentioned that SUVs which are cataloged as taxis will not be pertinent to the raise. The Japanese car manufacturer Honda, which has already started production of the Civic, in India. Quoted that the new excise duty proposal has not affected them in any way, and the production still runs the same way as before the hike.
According to the new levy wedge, many sedans that are quite similar in length to the SX4 and Altis will fall under the 27% expunge duty, even though they are above the slab standards. The government of India has amplified the tax charge for SUV to 30%, and for vehicles that are more than 1500 cc, 4000 mm in length and mediums which have 170 mm and above ground clearance levels. Because of this new format, many car makers were in a dilemma, as many cars from their brand have exactly the same or more than the specifications mentioned, which are not SUVs. The government of India has now made it understandable, and cleared the bewilderment of the manufacturers.