The Indian Government made a small error when it ranked SUV vehicles as any car that has engine capacity over 1.5-liters, more than 4,000 mm in length and a ground clearance of 170 mm and above.
This definition automatically labels cars such as the Toyota Corolla Altis or Maruti SX4 as SUVs, even though they are simple sedans, resulting in a 3 percent bigger excise needed to be paid. However, the Central Board of Excise and Customs (CBEC) realized the error and made the exception for the wrongly categorized vehicles.
"...it is clarified that the afore-cited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract the excise duty of 27 per cent as applicable to large segment cars", CBEC said in a circular.
As a result the sedans that “fall” into this "definition" of an SUV will benefit from a 27% excise and not the higher 30 percent one.
Full story at Indian Times
"...it is clarified that the afore-cited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract the excise duty of 27 per cent as applicable to large segment cars", CBEC said in a circular.
As a result the sedans that “fall” into this "definition" of an SUV will benefit from a 27% excise and not the higher 30 percent one.
Full story at Indian Times