Society of Indian Automobile Manufacturers (SIAM) officially said that the proposal offered by Oil Minister S Jaipal Reddy about the additional taxes of upto Rs. 2.55 lakh on diesel cars should not be considered until the heavy industries ministry approves the same.
The Senior Director of Society of Indian Automobile Manufacturers (SIAM), Sugato Sen expressed, “The consideration of additional taxes on diesel cars are still on but any step to hike the same will be done only after the approval of the nodal ministry, the ministry of Heavy Industries and Public Enterprises.”
It is clearly mentioned by the Department of Heavy Industry (DHI) along with Joint Secretary in the DHI Ambuj Sharma that they will oppose additional tax on diesel vehicles and for the same will convey in writing about the issue to the Finance Ministry.
Last week, Reddy also wrote to Finance Minister Pranab Mukherjee about considering a proposal for increase in excise duty on diesel vehicles from Rs. 1.70 lakh to Rs. 2.55 lakh in order to make up for the subsidized fuel.
But such a move according to Sugato Sen will make the automobile industry of the country confront a setback because it is already fighting back the market conditions with sluggish auto sales and increased petrol prices.
Mr. Sen said, “Petrol vehicles are not making much business and demand for diesel vehicles has also shed plus another additional tax will further impact demand.”
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- With New Tax Enforcement, Diesel Cars Are Likely To Get Pricier By Rs. 2.55 Lakh
- Central Govt. to Levy 10% Extra Duty on Diesel Cars this New Budget
- Auto majors wish for a diesel price hike in the coming budget
- Budget 2012 Relieves Tax Hike on Diesel Cars, Great Relief for Automakers in India