Official: Maruti SX4, Toyota Corolla are not SUVs; to attract 27% excise

Posted on: Jul 25, 2013 - 10:41am IST

Good news! The Maruti Suzuki SX4 and Toyota Corolla Altis will come under the 27% excise duty once again. The Revenue Department has clarified that these cars would no longer attract the SUV tax proposed in the last Budget.

Maruti SX4 Silky Silver

The Budget classifies an SUV as a vehicle that has an engine capacity of over 1,500cc, a length of more than 4,000mm and a ground clearance of over 170mm. Cars such as the Maruti SX4, Toyota Corolla and the Honda Civic were hence classified as an SUV by the government.

Apart from the nomenclature, these ‘SUVs’ faced an additional 3% excise duty and the manufacturer had to either pass it on to the customer through a price increase or had to absorb it themselves. A big letdown especially in these times of falling auto sales.

Facelifted_Corolla_Altis_side

However, the Central Board of Excise Customs (CBEC) released a statement yesterday and have cleared the confusion. This is what they said –

It is clarified 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 per cent as applicable to large segment cars.

This will certainly bring some form of respite to the car makers we are sure.

Note: The Honda Civic has been discontinued in India.

[Source – Economic Times]

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3 thoughts on “Official: Maruti SX4, Toyota Corolla are not SUVs; to attract 27% excise

  1. Tony says:

    What kind of morons are making such rules to classify sedans as SUVs. Pity them

    Reply
  2. Ayyappan says:

    Reminds me of the XUV story. One of my friends was the verge of tears when Mahindra added an under body stone guard to reduce its ground clearance to 160mm. Now this meant that the XUV cannot be called as an SUV anymore and my dear friend was actually dull and depressed for a few weeks since he was owning an MPV ! What a world !

    We need better purchasing decisions from customers and more knowledgeable decisions from the Governments to keep the industry moving in the right direction.

    Reply
  3. sandy says:

    Not enough though. They should make more research work on this for which they have to monitor the consumer’s usage, market study, keen observation on traffic and other such parameters followed by Europeans and other developed nations.

    Reply

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Anjan
Anjan Ravi

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