For car lovers Budget 2016 did not bring any good news, in fact their favorite mode of transport is going to be taxed more.
Small cars will suffer the minimum impact of the new taxes, while large cars worth more than 10 Lakh will see the maximum hike in price.
Most of the Auto Majors have all ready come out with the new price lists showing the increased prices.
Even though the new taxes will be levied only on cars dispatched from the manufacturing plants from April 1 2016, dealers have stopped delivery of cars to customers till the time effect of new taxes is made clear by their respective auto companies.
There is some good news for companies using hybrid technologies in their products, hybrid vehicles have been exempted from the new taxes. Maruti is one auto major which will benefit from this tax exemption, since it uses hybrid technology in many of its car models like Ciaz.
Surprisingly no new sops were announced for the electric cars and hybrid cars, which looking at Modi Government's commitment to clean energy vehicles, came out as a damp squib for the industry watchers.
Two wheeler companies have been exempted from the any tax hikes, this along with the major investment that the Government India is making in jump starting the rural economy should see two wheeler sales go up in the coming year.
Budget 2016 saw huge amount of resources allotted to infrastructure development, with more emphasis on timely completion of ongoing infrastructure projects.
I see two wheeler majors, auto manufacturers like Maruti which use hybrid technology in cars, and infracture companies engaged in road building, doing very well in the stock markets in the coming financial year.
I feel overall its a good budget, new taxes too will result in better roads and other facilities to make traveling more safe, comfortable and enjoyable for millions of car and bike owners in India.
....Alok
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