Union Budget 2013-14: SUVs to cost more; 100 % import duty on luxury vehicles

The budget proposes to increase excise duty on sports utility vehicles (SUVs) to 30 per cent from the current 27 per cent, while imports of all luxury vehicles, including super bikes, will attract 100 per cent duty.

This increase, however, will not apply to SUVs registered as taxis.

"SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 per cent to 30 per cent. However, the increase will not apply to SUVs registered as taxis," finance minister P Chidambaram said in his budgetary proposals.

Chidambaram also proposed to increase the import duty on motorcycles with engine capacity of 800 cc or more to 75 per cent from the existing 60 per cent.

According to Chidambaram, the affluent class in India consumes imported luxury goods such as high-end motor vehicles, motorcycles, yachts and similar vessels, adding, "they will not mind paying a little more".

"Hence, I propose to increase the duty on such motor vehicles from 75 per cent to 100 per cent," he said.