Tuesday, March 27, 2012
By Shilpa Chopra
Luxury cars to be cheaper by Rs 2000 to Rs 1 Lakh
The automotive industry that was in shock-state since the announcement of Union Budget 2012-13, which enlarged excise tax from prior 10% to current 12%, witnessed a pleasant Monday with respite in VAT (Value Added Tax) duty. The Rajasthan state government took an initiative in their General Budget 2012-13 to reduce the VAT charges from former 10% to presently 8%. This slash will be effective on the luxury cars that cost above INR 10 Lakh. With the implementation of it, the premium car will observe a cut that ranges from INR 2000 to INR 1 Lakh in the state.
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Previously, in order to counter the higher VAT duty in Rajasthan, the car buyers were seen registering their vehicle from neighboring states like Haryana and Delhi, which boast lesser taxes in comparison to the home state.
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The other remarkable accomplishment in the state budget that saw a delight on gloomy faces of petrol vehicle owners was the cut in petrol prices by 1 rupee 30 paise as VAT on petrol reduced to 26% from 28%.
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The above INR 10 Lakh vehicles that will now be available at a pocket friendly price with curtailing of VAT are Honda Civic, New Hyundai Sonata, Toyota Corolla Altis, Skoda Laura, Volkswagen Jetta, Mahindra XUV500 along with Toyota Fortuner.
