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March 1, 2000
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Automobiles
Overall impact: Neutral
Positive features
- Lower peak rate of customs duty will bring down cost of imported components. This is good news for original equipment manufacturers (OEMs) with high degree of import dependence. Domestic auto component manufacturers will have to face increased competition from foreign component suppliers.
- Tyres for OE segment will now attract 16 per cent excise against 30 per cent earlier. OEMs could claim a large part of this benefit from tyre manufacturers.
- Increased allocation to agriculture sector could benefit tractor manufacturers.
Negative features
- Excise duty on multi-utility vehicles (7-12 seaters) increased marginally to 32 per cent (16 CENVAT + 16 per cent Special Excise Duty).
- Excise duty on tractors with engine less than 1800cc increased from 8 per cent to 16 per cent.
- MODVAT benefits to now be limited to the basic CENVAT rate of 16 per cent. MODVAT benefits cannot be claimed on Special Excise Duty paid on raw materials and components.
Neutral features
- Excise duty on passenger cars (upto six-seater) remains unchanged at 40 per cent (16 per cent CENVAT + 24 per cent Special Excise Duty).
- Excise duty on passenger commercial vehicles (13-seater and above) remains unchanged at
- 16 per cent.
- Excise duty on commercial vehicles also constant at 16 per cent.
- Excise duty on two wheelers (lower than 75 cc) also remains unchanged at 24 per cent (16 per cent CENVAT + 8 per cent Special Excise Duty).
- Excise duty on tractors with engine of 1800 cc or more remains the same at 16 per cent.
ALSO SEE:
BUDGET IMPACT
The first cut
A matter of life and debt
On the MAT
How will your tax outgo change?
SECTOR IMPACT:
PRELUDE TO THE BUDGET
What will Yashwant Sinha do?
How will personal taxes change?
Fiscal report card
PRE-BUDGET SECTOR ANALYSIS:
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