Union Budget 2007 wishlist: SIAM seeks duty cut

The Society of Indian Automobile Manufacturers (SIAM), predictably, wants an excise duty cut on all vehicles in India.

BY OUR AUTO CORRESPONDENT

February 16, 2006: The Society of Indian Automobile Manufacturers (SIAM) wish list is out. In a pre-budget exercise, the auto makers’ body has urged the Union Finance Ministry to announce a uniform rate of excise duty on all passenger vehicles, cars, MPVs and MUVs of 16 per cent. It has also requested that the excise duty on two and three wheelers be snipped to 8 per cent.

The SIAM wish list has also said that the import duty tariffs on vehicles need not be brought down below 12.5 per cent. Further, the rate of excise duty for motor vehicles with seating capacity up to 13 persons including driver when registered, as maxi-cab should be 16 per cent.

It has also requested the finance ministry that the rate of excise duty for motor vehicles for transport of goods fitted with petrol engine should be 16 per cent. Urging the government to continue the tax incentives on research and development incentives for another 10 years, it also said a deduction similar to housing loan be given for car loans too. This according to SIAM would help in the growth of the passenger car segment.