It was a routine marketing mailer which i ignored at the first instance.
While going through the article again, i felt the pain that the prices could go up if there is an increase in excise rate which is very likely in this budget.
If implemented, prices for all types of car will go up significantly depending on the percentage increase.
Source: The Economic Times
Edition: Mumbai Edition
Source: 25th January 2010
The government is considering an across-the-board increase in excise duty in the Union budget 2010-11, as it faces pressure to withdraw fiscal stimulus measures in the wake of a 16-year high fiscal deficit of 6.8% in the current financial year. "One opinion being considered is the increase in the cenvat rate by 2% while leaving the service tax rate unchanged at 10%", a finance ministry official told ET. Cenvat refers to the median excise duty, tax on manufacture of goods, levied on nearly 90% of the goods made in the country.
More services could be brought under the tax net to allow the government to keep the service tax rates unchanged, the official said, requesting anonymity. A hike in service tax rate would be an immediate burden on consumers already battling high food prices. The proposal is at an early stage and may undergo significant changes by the time the budget is presented.
An alternate proposal is also under consideration, which moots an increase in excise rates in sectors that are doing well such as automobiles, instead of an across-the-board hike.