The government is likely to remove an additional excise duty of Rs 10,000-20,000 on large cars and sports-utility vehicles as part of the package for the automobile industry which is facing a downturn in sales for want of cheap retail credit. The additional duty was imposed in June this year.
Heavy Industry Minister Sontosh Mohan Dev who met Prime Minister Manmohan Singh today said removal of additional excise duty was one of the major demands of the industry.”This will go. I am sure, PM will consider this,” Dev said here. The minister indicated that sops for the automobile industry may come separately and not as a part of the second stimulus package to be unveiled in the next few days.
The government had put extra excise duty on large cars, sports-utility and multi-utility vehicles in an effort to promote fuel-efficient small cars. The heavy industry ministry is backing the automobile manufacturers in their demand for the removal of restriction on steel and steel products import and the five per cent customs duty on non-alloy steel imposed in November. The steel industry, which is facing import surge, is seeking increase of 10 per cent in customs duty. Dev, however, opposed the demand of the steel-makers.
