“We are certain that the extension of the reduced excise duty will contribute positively to improve the buyer sentiment and would help in bringing about a sustained recovery in the automotive industry that has been languishing for over two years now. This will go a long way in bringing back growth and investments in the industry as well as encourage higher employment. On behalf of the entire automotive sector, I would like to thank the Government for its very timely and supportive role”, he added.
The Confederation of Indian Industry (CII) has also welcomed the announcement made by the Finance Minister extending the stimulus provided on February 17 by way of reduction of excise duty upto December 31, 2014, on certain goods. This would mean that the reduction in excise duty ranging from three per cent to six per cent on automobiles and two per cent on capital goods, consumer durables as well as goods falling under Chapters 84 and 85 of the Central Excise Tariff would continue for another six months, upto December 31.
CII, in its pre-Budget memorandum for 2014-15, has asked for extension of the stimulus package upto March 31, 2015. It hopes that further extension will be considered by the Government keeping in view the negative growth in automobiles as well as capital goods sectors during 2013-14.