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Ideal time for buying: price of cars expected to go up in January!
Posted on: 02/Dec/2014 1:08:21 PM
The extended concession offered by the central government on the Kalal Tax expires on 31st December.
Hence, there are strong prospects of the car prices going up after January.
The previous UPA government presented the interim budget during February last year. It offered exemption of Kalal Tax for cars, SUVs, and 2-wheelers.
Due to rise in prices and the prevailing backward economic situation in the country, automobile business was rather dull. Vehicle sales also went down.
The new government led by BJP took over in June. It was expected that Kalal Tax might be restores by this government.
However, the new government extended the Kalal Tax concession for another 6 months. As a result, car prices remained stable.
However, sales of new cars did not pick up due to the prevailing economic crisis.
The traders expected the sales to go up during the festive season beginning October and ere optimistic of more sales with people having lots cash for disposal (Diwali bonus, etc). On the contrary, the car sales went down by 2,55% in October as compared to 1.03% in September.
Earlier, Kalal Tax was charged at 12% for small cars, scooters, and motorcycles.
Currently, Kalal Tax is charged at 8%. For SUVs, is 24%, and for medium cars, it is 20%.
Automobile manufacturers have put up a request for the government to extend the concession of Kalal Tax as it expires on 31st December.
However, the current period is ideal for buying cars, especially with the year-end attractive offers and discounts, as there are bright prospects of rise in car prices from January.
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