Click to play videoNew Delhi: Most middle class families are waiting for the budget to finalizing their purchases. So will the wait be worth it? One look at the automobile industry’s budget wishlist doesn’t reflect so.
Delhi resident Vinay Malhotra, earns Rs 4 lakh per annum and is planning to buy a small car. Saying that he “expects the budget to reduce the price of small cars and pass some benefit on to the consumer," Malhotra has adopted a wait and watch policy.
In the key proposals to the Pre budget memorandum, the industry has asked for a uniform excise duty of 16 per cent on all passenger vehicles, which means that while small cars may cost the same, mid size cars are expected see an 8 per cent excise cut.
However, since two months ago most auto companies increased car prices, the net effect be small cars becoming more expensive than previous year.
"Post-budget, the excise duty will reduce on cars and companies will most likely reduce the prices. Yet the prices after the budget wont be less than the ones given out in December 2006," said Tax Expert P S Jain.
Whatever the outcome of the budget 2007, the worst seems to be over for the consumers in the form of a the December 2006 price hike.
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