The 2010 Union budget is out and here are some of the highlights.
- Excise duty has been increased by 2%. This means excise duty on small cars will now be 10%, large cars and SUVs will attract 22% excise duty.
- Excise duty of Re 1 per litre has been levied on both Petrol and Diesel. This amounts to a price hike of Rs 2.67 a litre and Rs 2.58 per litre for petrol and diesel respectively.
- Excise duty on steel to be hiked. This will result in cars being expensive due to greater input cost. Car manufacturers like Maruti, Tata and Hyundai have already announced that they would increase their car prices.
- Electric cars will now attract duty of 4% only - it was 8% earlier. The EVs are also exempted from custom duty and other special duties on the components used.
- Road development fund allocation has been increased and upped to Rs 19,894cr.
- Excise duty has been waived off on solar panels. Solar power rickshaws to enjoy duty concession.