Arun Jaitley, the Finance Minister has presented the Union Budget 2016 today in Parliament. And the most important news is that new cars are now getting expensive in India. Auto makers expected some major reforms for the improving domestic manufacturing. And recently, SIAM and auto makers welcomed the rail budget 2016 that proposed a Rail Auto Hub in Chennai. Earlier, Make in India initiative also witnessed the positive response as automakers focused on India as their manufacturing hub.
And now we bring you the top five announcements that mainly centres the Auto Industry.
1. Luxury cars will be more expensive for the buyers, as 1 percent additional tax will be charged on luxury cars above Rs 10 lakh.
2. 1% of the Infrastructure Tax will be imposed on petrol, CNG and LPG Cars of length not exceeding 4-metre with an engine capacity below 1200cc.
3. An additional 2.5 percent tax on sub-4 metre diesel cars with engine not exceeding 1500cc, and 4 percent tax on bigger sedans, MPVs and SUVs with higher engine capacity, while Electric Vehicles, Hybrids, Hydrogen fuel-celled vehicles are exempted.
4. Increase in Custom Duty on commercial vehicles from current 10 percent to 40 percent, giving a boost to the government's green theme he has waived off duty on electric & hybrid vehicles. Furthermore, the FM has allocated Rs 75 crore for electric vehicles.
5. Infrastructure development with a total outlay of Rs 21,246 crore for the fiscal 2016-17, and Passenger traffic roads will be made more efficient. The Government is targeting 10,000 kms of national highway and upgradation of 50,000 kms of state highways in 2016/17.