Excise duty has
been hike from 10% to 12% in the Union Budget 2012-13. The hike in Excise duty
was in line with the Industry expectations. Most of the top brokerage firms had
given their view on a 2% rise in the excise duty in their pre-budget sessions.
According to market
players, the move to hike excise duty is more about laying a road map towards the
convergence to the Goods and Services tax (GST) which will be operational by
August 2012.
So, now with the
hike being announced, Cars are expected to get expensive as Excise tax on
small cars have been raised, to 12% from 10% and that of large cars to
24% from 22%
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