Indian Auto Industry's Contribution to Excise Duty Rrise by 54%.

Due to the continuous rise in automobile sales, the Government of India has seen increase in profits over the last few years. The profit margin rose to a new high last year, when the Indian Government collected Rs 11,901 crores as excise duty from car buyers in India.

Mr Pawan Goenka, President SIAM (Society of Indian Automobile Manufacturers) said, “Our contribution to the government coffers has gone substantially due to massive growth posted in the past few months. We are looking forward to similar growth and has asked the government to refrain from any changes in the tax structure in the upcoming budget to keep the current momentum going.”

The huge rise is also due to the 2% increase in excise duty rates which came into effect from last year’s budget. Indian Government collected a total of Rs 60,384 crores in excise duty in 2010. The auto industry also increased their contribution by 20% in 2010 when they paid Rs 11,901 crores. Auto industry in India is expected to pay more excise duty in 2011, compared to 2010.

Source : rushlane.com