Budget 2022/23: Excise Duty Increased On Cars Above 1500cc, Prices To Increase

The government has announced to increase the excise duty on cars above 1500cc by 5 percent through the budget of the upcoming fiscal year.The excise duty on cars between 1500cc - 2000cc has now increased by 5 percent to 75 percent. Earlier, it was 70 percent. Similarly, the excise duties on cars between 2000cc - 2500cc and 2500cc - 3000cc have also increased by 5 percent. These segments will now attract 85 and 95 percent excise duties respectively. Furthermore, vehicles above 3000cc will now attract an excise duty of 105 percent.On a brighter note, the excise duty on mass-selling lower displacement cars will stay like before.With the new excise duty coming into effect, dealers will be compelled to increase the price of these vehicles in the already highly taxed segment.