The government, in the Union Budget, had hiked excise duty on SUVs with engine capacity of over 1500cc, length of more than four metres and ground clearance of 170mm or above, from 27percent to 30 percent. 

In our market, cars like the Toyota Altis and Maruti SX4 also fall under these parameters and hence, suffered the excise duty hike as well.

Now, the Central Board of Excise and Customs (CBEC) has issued a statement of clarification saying, “It is clear that the afore-cited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract the excise duty of 27 percent as applicable to large segment cars.”