ACMA welcomes reduction in Excise duty on Automobiles in the Union Budget
- Excise, Service Tax and Customs duty remain unchanged for Auto Components
- Reduction in Excise duty on Capital Goods to enthuse manufacturing investments
ACMA, the apex body representing India’s auto component sector, welcomed the announcement on reduction of Excise Duty in automotive sector. Further, the industry body expressed satisfaction on the focus on infrastructure development, education, skil, infrastructure development and attracting investments in manufacturing. It also appreciated the measures announced for sustaining growth and scaling-up of the manufacturing sector, in particular the MSMEs.
Congratulating the Union Finance Minister, P Chidambaram, President ACMA, Harish Lakshman, said, “We are glad that the Hon’ble Finance Minister, given the circumstances, has unveiled a pragmatic budget. ACMA welcomes reduction in Excise Duty on Vehicles – CVs, Small Cars and Two-Wheelers from 12% to 8%; on SUVs from 30% to 24% and on large and mid-sized cars from 27% to 24% and from 24% to 20% respectively. The automotive industry has been reeling under significant pressure for quite sometime now, the announcement on reduction in excise duty is timely and will help boost the sagging morale of the automotive sector. Further, the reduction in excise duty on Capital goods from 12% to 10% will stimulate the industry for higher investments in manufacturing.”
Lakshman further added, “The auto component industry in India aspires to be one with its own design and engineering capabilities, setting up of an exclusive Research Funding Organisation is a step in right direction and will motivate the industry in realizing this vision.”
