December 31, 2014 8:48 PM

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Govt withdraws excise duty concessions to Auto industry

The government has withdrawn the excise duty concessions to the Auto industry. Sources said that Finance Ministry has decided not to extend the concessions further. The concessions were given by the UPA government in the interim Budget in February, which were later extended by the NDA government till the 31st of this month. In case of SUVs, the excise duty had been reduced to 24 per cent from 30 per cent, whereas in mid-sized cars, it was reduced to 20 per cent from 24 per cent. It was slashed form 27 percent to 24 percent for the large cars. AIR correspondent reports, with the decision of not extending the concessions, the cars, SUVs and two-wheelers will become expensive from the first of January. The auto industry had shown a growth of over 10 per cent in the first six months of this fiscal after two successive years of slump in sales.

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