Duties on cars of 1001-1500cc to rise
Friday, 11 June 2010
FE Report
The budget for 2010-11 fiscal year has recommended increase in supplementary duties on motor cars of 1001- 1500 cc but kept the duty structure of higher cc cars same as the present rate.
"Considering persistent traffic jams causing sufferings to city dwellers, I propose to revise the rates of supplementary duty and reclassify motor cars and micro buses based on cylinder capacity," the finance minister said in his budget speech.
He said the budget has proposed to continue the flat rate-based depreciation system imposed in the last year's budget and to reduce the consolidated rate of depreciation from 40 per cent to 35 per cent making it applicable only for cars up to four years old.
In order to prevent misdeclaration in the customs valuation of new motor cars, the minister proposed to make mandatory the submission of price certificate from the manufacturer or from the trading agent with at least 30 percent ownership of the manufacturer.
The budget suggested increasing the supplementary duty of cars from 1001 cc to 1500 to 45 per cent from the present 30 per cent and micro bus upto 1500 cc to 30 per cent from the present 20 per cent. The supplementary duties of the cars from 1501 cc to above 4000 cc will remain same at the present rate. The duties of these motorised vehicles are from 100 per cent to 500 per cent.
The budget for 2010-11 fiscal year has recommended increase in supplementary duties on motor cars of 1001- 1500 cc but kept the duty structure of higher cc cars same as the present rate.
"Considering persistent traffic jams causing sufferings to city dwellers, I propose to revise the rates of supplementary duty and reclassify motor cars and micro buses based on cylinder capacity," the finance minister said in his budget speech.
He said the budget has proposed to continue the flat rate-based depreciation system imposed in the last year's budget and to reduce the consolidated rate of depreciation from 40 per cent to 35 per cent making it applicable only for cars up to four years old.
In order to prevent misdeclaration in the customs valuation of new motor cars, the minister proposed to make mandatory the submission of price certificate from the manufacturer or from the trading agent with at least 30 percent ownership of the manufacturer.
The budget suggested increasing the supplementary duty of cars from 1001 cc to 1500 to 45 per cent from the present 30 per cent and micro bus upto 1500 cc to 30 per cent from the present 20 per cent. The supplementary duties of the cars from 1501 cc to above 4000 cc will remain same at the present rate. The duties of these motorised vehicles are from 100 per cent to 500 per cent.