Revenue department cuts excise duty on the SX4 and Corolla Altis

OD Newsdesk Published: July 25, 2013, 04:12 PM IST

In what comes as a relief to the motor industry, Maruti SX4, Honda Civic and Toyota Corolla Altis may get cheaper thanks to the revenue department cutting excise duties on these products to 27%.

2013 Maruti SX42013 Maruti SX4

The revenue department has clarified that the three cars do not fall under the category of Sports Utility Vehicles (SUVs). While increasing the excise duty on SUVs from 27% to 30% in the Union Budget, the government had laid three benchmarks to define the SUV category – engine capacity of over 1500 cc, length of more than 4,000 mm and ground clearance of 170 mm and above. The higher excise duty was levied owing to the larger road and parking space that SUVs occupy.

The Central Board of Excise and Customs (CBEC) has put to rest all the confusion whether certain cars, which have similar technical specifications to the SUVs, would attract 30% excise applicable to the sports utility vehicle (SUV) segment or 27% meant for large sedans.

"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 per cent as applicable to large segment cars," said CBEC.

This announcement has no impact on the Honda Civic, since it is no longer in production.

Price (Ex-Delhi)
Starts Rs 17.94 Lakhs
Max Power(ps)
Max Torque(Nm)
26.8 Kmpl

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