10.

MUV as Taxi

Refund to be allowed for all Motor vehicles such as MPV and Station wagons (with seating capacity below 10) classified under chapter heading 87.03 when registered as Taxi.

Under Notification 6/2006 dated 1.3.2006, Motor Vehicles classified under Chapter heading 87.03 with a seating capacity of 6+1 person (including driver) when registered for use solely as taxi is entitled for refund of Duty of 8% to the taxi customer. However, the chapter heading 8703, which also includes Motor vehicles with seating capacity above 6 +1 persons is not eligible for refund of 8% duty refund when registered for use solely as Taxi by the taxi customer.

Consequent to above restrictions, a distinction has been made in the tariff denying 8% duty refund to the Motor cars with a seating capacity of over and above 6+1 persons. It may be seen that Taxi segment is growing rapidly and its growth is directly attributed to robust growth of the BPO sector. In fact, Taxi segment contributes considerably to the bourgeoning BPO sector growing vertically with it. Therefore, it is necessary that 8% duty refund should be given for all the vehicles classifiable under chapter heading 87.03 with a seating capacity of below 10 persons.

11.

Incentive for conversion to cleaner technologies/ Alternative Fuel – CNG/ LPG/ Hybrid vehicles and other Alternative Fuel vehicles

In order to promote use of CNG/ LPG/ Hybrid vehicles and other Alternative Fuel vehicles, a clean alternate fuel, in the interest of protecting environment, the excise duty levy on alternative fuel vehicles and the parts and components thereof may be reduced.

Compressed Natural Gas (CNG) / Liquefied Petroleum Gas (LPG) / etc has now been established as a suitable alternative automotive fuel, particularly from the point of view of environmental protection.

In order to gradually increase the usage of such vehicles, the price has to come down significantly. To achieve this, in the over all interest, support from the Govt by way reduced taxes / duties on CNG / LPG / Hybrid vehicles and other Alternative Fuel vehicles and components will be required.