Automakers call for rollback of excise duty

New Delhi, June 7: The domestic automobile manufacturers are planning to make a representation to the government seeking immediate roll back of the five per cent additional excise duty on multi-utility vehicles and other levies imposed on the sector in the Union Budget for 1998-99. quot;All the automakers are presently assessing the total impact of the Budget on their individual businesses and would next week submit the memorandum seeking reversal of these duties,quot; the Association of Indian Automobile Manufacturers AIAM executive director, Rajat Nandi, told UNI here. The increase in excise duty from 25 per cent to 30 per cent on multi-utility vehicles MUV, he said, was unjustified as these vehicles primarily service the needs of the rural areas and inter-city tour taxi operators. Such a levy would only further depress demand.

The industry also objected to the eight per cent special duty on all imports across the board and the five per cent cut in Modvat credit, he said, adding that it would have aspiralling effect in increasing costs of auto components as well as vehicles manufactured.