Prices of two-wheelers, cars and other automobiles are all set to increase from January 1st, 2015. So, if you are planning to buy any such vehicles in the New Year, it is expected to cost more than what it used to be in 2014. The finance ministry has decided to withdraw the excise duty concessions on automobiles as well as consumer durable goods, as the reports were received. In other words, this means that the excise duty on SUVs, other cars and two-wheelers to go up by 2 to 6 per cent. The concession was extended by the Narendra Modi government in June up to December 31.
This means that the vehicles are expected to increase by 3 to 6 per cent, depending on the model. This comes at a time when the government is facing quite some problems to meet the ambitious fiscal deficits. This fact can be attributed to the inconsistent tax receipts in a slow economy. Incidentally, the deficit has been calculated to be 4.1 per cent of the gross for the year, which ends at March 31, 2015. According to the varied estimates, the government has been facing a loss of 2500 per month due to the lack of revenue collections.
The concessions are critical on the part of the government and if they are not extended the duty on commercial vehicles, motorcycles, scooters and small cars. For all these models, it will be increased by an 8 per cent to 12 per cent. For SUVs, the hike in the excise duty will be approximately 20 to 24 per cent. In this context, the UPA government had reduced the excise duty by a fair margin during the interim budget. The outcome of this fact is that cars and other vehicles are set to get more expensive from 2015. If you have already made a booking that is definitely a great way to save a few thousand bucks.
