With rise of excise duty in the Union Budget, announced on 16th March 2012, Tata Motors has decided to raise the prices of its passenger as well as commercial vehicles. The hike in prices is parallel to the increase in excise duty and will be applied with immediate effect. Owing to this, the prices of Tata Indica are set to expand between the range of Rs. 4,000 and Rs. 20,000.
Moreover, the Government has also decided to increase the custom duty over cars that are brought as Completely Built Units (CBU) and Completely Knocked Units (CKD), from 60 to 75 per cent. Finance Minister Pranab Mukherjee told on 16th March 2012 that the excise duty imposed on cars is currently taxed at 22 per cent, which will be further increase to 24 per cent. In addition to this, the excise duty over cars that are currently charged at 22 percent with additional Rs. 15,000 per unit would expand to 27 percent.
