Some of the news percolating from the Union Budget 2011 is as follows. Contrary to popular belief, the excise duties haven’t been revised and they are still, very much the same. For the one not in the know, the excise duty will still stand at 10% for small cars whereas for the bigger ones it would be 22%. As expected, the budget states that special incentives should be given for the Electric Vehicles as well as Hybrid ones. This eco-friendly measure is sure to be welcomed by many.
Even for the battery technology that these EV manufacturers would be importing, there would be no customs duty and also a Central Excise Duty concession. In a bid to promote the LED usage, excise duty on the same has been reduced to 5 %. LEDs consume less electricity as also are more durable as regards their life span. For any other vehicle using fuel cell technology, there would be a concessional excise duty figure of 10% only. This should boost the morale of the auto industry which was looking forward for a huge hike in the stakes.