Auto stocks fall on additional cess

Rajesh Kurup Mumbai | Updated on January 20, 2018 Published on February 29, 2016

The automobile sector index was trading flat, following announcements of additional cess in the Union Budget. The additional cess would result in vehicles becoming costlier.

In the Budget, Finance Minister Arun Jaitley announced a 1 per cent additional tax on cars priced above Rs 10 lakh, a 2.5 per cent on diesel cars and a 4 per cent additional levy on high engine capacity vehicles and Sport Utility Vehicles.

These were announced to check pollution and encourage the use of hybrid cars, the Finance Minister added.

Shares of Tata Motors were trading down 0.07 per cent at Rs 302, Maruti Suzuki India down 3.17 per cent at Rs 3,301.05, while that of companies such as Mahindra & Mahindra were up 0.52 per cent at Rs 1,236.

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Published on February 29, 2016
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