The government has reduced excise duty on cars and two-wheelers, and capital goods and consumer durables to boost manufacturing and growth. Presenting the Interim Budget for 2014-15, Finance Minister P Chidambaram reduced the excise duty on small cars, motors cycles, scooters and commercial vehicles from existing 12 per cent to 8 per cent. Sports Utility Vehicles, SUVs will attract a lower duty of 24 per cent from 30 percent earlier.

Large cars will attract a duty of 24 percent and mid segment cars 20 percent. Justifying the excise duty reliefs, Mr Chidambaram said, the current economic situation demands some interventions that cannot wait for the regular Budget. In particular, the manufacturing sector needs an immediate boost.