Even as the government grapples with record losses of public sector oil marketing companies subsidising fuel as crude reaches record prices, it has come out with a new tax designed to discourage the buying and usage of high-capacity, fuel-guzzling automobiles.

For cars, multi-utility vehicles (MUVs) and sports utility vehicles (SUVs) of 1500cc to 1999cc engine capacity, a specific duty of Rs 15,000 a unit has been imposed. The duty will be Rs 20,000 a unit on those with a capacity of 2000cc and above.

The specific excise duty, which would be in addition to the existing ad valorem duty of 24 per cent, will come into force with immediate effect, an official release said. The tax will be levied on vehicles manufactured or assembled in India, officials said later.

The duty structure for cars with an engine capacity up to 1500cc would remain unchanged. Such cars account for as much as 80 per cent of all vehicles sold in India.

This decision further increases the disparity in duties imposed on small and big cars in India. Cars with a engine capacity of up to 1200 cc with a maximum length of 4 metres attract an excise duty of 12 per cent. Cars with a bigger engine capacity are charged double that rate.

''The big cars are used by the affluent sections of the society and they should be ready to pay a higher charge in the wake of rising global crude prices,'' an official in the department of heavy industry (DHI) said, adding that the move was anticipated as global crude prices are hovering at $135 per barrel and anticipations are rife about the prices touching the $200 mark anytime during the year.

The decision on the additional levy comes on the heels of the government raising the price of petrol, diesel and cooking gas in the face of a ballooning crude oil bill. It also coincided with the announcement that rising food and vegetable prices have pushed inflation to a seven-year high of 8.75 per cent.

Bigger capacity cars usually use diesel, a fuel that is even more heavily subsidised at Rs.28.58 a litre than petrol which enjoys a subsidy of Rs.16.34 a litre. The finance ministry feels that as diesel is highly subsidised to keep public transport, trucking and farm costs low, it is ''morally'' wrong to allow it to be the fuel of choice for top-end SUVs and MUVs.

Oil industry officials, too, had been urging the government to take steps to discourage large vehicles, especially diesel-run, to ensure that the fuel subsidy does not serve the affluent. The demand for diesel had risen by about 25 per cent in the recent past.

The auto industry, struggling to cope with rising steel and plastic prices and high interest rates, ''vehemently'' opposed the levy and requested the government to ''immediately withdraw this unwarranted hike''.

Some of the industry reactions:

Maruti Suzuki: ''It will hamper the growth of bigger cars, which have posted a robust growth in the past few months after new cars were launched in the domestic market. We are predominantly makers of small cars, but sale of our premium vehicles like Grand Vitara and SX4 sedan will be adversely impacted.''

Hyundai Motor India: ''It is absolutely unexpected at this time. While we are fighting the huge increase in input costs and fuel prices, the additional duty has come as a big blow, at the wrong time. It will push up prices for the customers, who is already reeling under high inflation and rising interest rates.''

General Motors India:-''The industry is passing through a tough time and this hike will adversely affect the sales. We have been asking for a lower duty structure on all kind of vehicles, but this policy of higher taxes against bigger cars will hamper growth of Indian automobile industry.''

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