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Diesel car excise duty taxation plans still under consideration: Government

The diesel car industry is on the full bloom and the government is preparing things to deflate it. It is at this time that diesel cars such as Maruti Swift Diesel, Maruti Swift Dzire diesel, Maruti Ertiga Diesel, Renault Duster Diesel and other diesel models of cars have seen considerable rise in demand than the petrol trims and the government could impose tax on diesel cars following which the diesel car prices will take an upward swing. It could be possible that the already costly diesel models of the cars will be dearer by Rs 30k - 50k after the new tax regime comes into action.

The matter has been thought to be shelved but the government has said in a reply to a question raised in the parliament that the government is examining the proposal and will soon come to a decision on imposing excise duty on diesel cars. It is said that following the rise in excise duty, the diesel car prices will take a sudden hike and right from the entry level diesel hatchback Tata Indica eV2 to the costliest diesel car, all will see a price rise. Thus, the price rise is expected to put the diesel cars out of reach of the car buyers and people will desist from buying petrol cars as the petrol prices are readying themselves for a jump again. In this case, the car buyer will have an option not to buy a car.  

Where the demand is going to slid, the whole industry could see a downtrend and possibly the car makers will think four times before launching new cars India. In the reply, the Minister of State Finance, S S Palanimanickam has reportedly said that the ministry has received such representations to hike the excise duty on diesel cars and the ministry is examining the details. He also said that initial examinations have found that the diesel cars are more polluting than the petrol cars and diesel car users are at an unintended benefit.