The budget 2017-18 has proved a blessed one for new car buyers. The government has reduced car registration fee and customs duty for the tax returns filers while no tax relief is given to non-filers. The government has granted relaxation on cars according to the proportion to their horsepower.

According to the budget documents registration fee for 800cc cars has reduced from Rs 10,000 to Rs 7500 and of 1000cc cars is reduced to Rs 15000. Those who wish to buy a brand new 1300cc car have to pay only Rs 25000 instead of Rs 30,000 in terms of registration charges.

In addition to this, there is the sharp decrease in withholding tax for automobile purchasers. It would be a win-win situation who would buy cars under the new Prime Minister Scheme because withholding tax is absolutely abolished under this scheme.

The story does not end here; there is a discount of around 25% for those who aspire to buy hybrid car ranging from 1801cc to 2500cc.

The government appears to be more generous for the auto sector. If we go through budget 2013-14 we will see a full-time tax exemption of 100% on import of 1200cc hybrid cars; the government also gave 10% exemption of excise duty on 1800cc local made cars. 10% customs duty also sacked on car tires.


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