CII welcomes extension of excise duty on auto sector 26/06/2014

CII welcomes extension of excise duty on auto sector
26/06/2014 10:50
Hailing Finance Ministry for extending reduced excise rates in auto industry sector, Confederation of Indian Industry (CII) said the move will boost the manufacturing sector which is facing slowdown blues. The Finance Minister has extended the stimulus provided on 17 February 2014 by way of reduction of excise duty upto 31 December 2014 on certain goods. This lead to the reduction in excise duty ranging from 3 to 6 per cent on automobiles and 2 per cent on capital goods, consumer durables as well as goods falling under chapter 84 and 85 of the Central Excise Tariff would continue for another six months i.e 1 July 2014 to 31 December 2014. The association in its pre-budget Memorandum for 2014 – 15 has asked for extension of the stimulus package upto 31 March 2015, i.e., the end of the financial year. We hope that further extension will be considered by the Government keeping in view the negative growth in automobiles as well as capital goods sectors during the financial year 2013-14, CII said in a press release.

New govt should retain the excise duty cut: GM

New govt should retain the excise duty cut: GM

US auto major General Motors said the new government in India should continue with the excise duty cut for the sector as announced in the last budget, reported PTI. "The automobile industry in the country is in bad shape registering a de-growth in the last four months of 2014. The new government in its budget should continue with the excise duty cut as announced in the last budget," GM India vice-president P Balendran told media. Narendra Modi-led BJP government will take charge this week following a resounding victory last week in general election. It is expected to announce the Budget 2014-15 within a couple of months. The interim budget was announced in February by the outgoing UPA II government. Balendran said that the buyer sentiment was poor due to high interest rates and inflationary pressures. "It will take at least six to nine months for the automobile industry to be back on tracks," he added. The industry's growth during 2014 is expected to be in single digit, 4-5 per cent, he said. "We hope to grow at par with the industry." Earlier, GM India had announced that the company would start exports of its products from later part of this year. "We are yet to finalise the export strategy. But it will be done soon," he said. So far, the company had been exporting to Nepal and Bangladesh in a small way, he said. Yet to reach break-even, GM India made operational profits in 2004 and 2005. "Once the demand picks up, the company is ready to ramp up production at its Halol and Talegaon plants," he said. Both the plants have a combined capacity of 2.82 lakh units per year.