Well lets be analytical.. I can be worng so please correct me
Before 15-March-2011
Duties @ manufacturing
custome duties, import duties, etc
Taxes @ factory price
SED@1%
GST@17%
Net total Price inclusive of taxes told by dealers/avilble on websites
We pay 1% Registration fee @ net total for cars upto 1000 CC and for upwards 2%. Further more wealth tax of Rs 7,500 for cars upto 1000 CC
that means at least 20% on factory price and please dont forget to include freight (Rs 12,000 to 20,000 for different cars) and own/commission charges which cant be summ in percentages and very high nowadays
NOW after 15-March
Taxes @ factory price
SED@2.5%
GST@17%
this increase in SED not only affect factory price but also Registration charges and own money. further increase (about 10%) in diesel/ petrol prices in last two months has also affected cost
Some of equipment (mainly manufacturing) has zero rated sales tax, but govt has also applied taxes on them ,i had no idea about how much it has affected auto sector but my sure guess is that it had some affect.
Thus we pay at least extra 22%
After Budget
Very bad situation as likely increase in custom & import duties
furthermore R GST or VAT is still hot issue and provincial govt are also demanding their shares in GST. Thus impact would be great
At the end, duties and taxes are not bad but if they are increasing/imposed on monthly basis with corrupt societies like us. then its a nightmare for any manufacturing setup.
if & only if we imposed a regulated tax structure for 5 years, then a significant growth can be expected. other wise
be prepare for a mini budget in October, December...and so on