Tuesday, July 26,
The Finance Ministry is likely to take a call on revising the excise duties on cars and tobacco-related products this week, which was not revised in the Union Budget this year.
According to sources, various suggestions have come on this (revising the excise duty), but no final view has emerged as of now.
However, sources said that the task was not an easy one. As the rate of growth of manufacturing and capital goods is on a decline, any duty hike would affect the demand. There is also the fear of a fall in investment demand.
According to industry experts, “the anticipated hike in excise duty on cars may not have a major impact on the steel industry. However, it may add on to the cost of acquiring cars as Auto companies are already facing hard times with sales growth slowing down and input costs rising up. So, they would like to pass on the hike to customers”.
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