The decision to slash the excise duty on motor cars to 20 per cent in the Budget for 2004-05 may cost the finance ministry about Rs 300 crore in additional revenues even if the high demand levels, witnessed by the automobile industry this year, are sustained in the next.
However, the ministry may be able to reduce the special excise duty on air conditioners and tyres from 8 per cent to 4 per cent in its move to gradually bring taxes on so-called
