Bigger cars more expensive!



Indian government is nuts. They have now increased the excise duty on cars with engines bigger than 1500cc.

This tax increase is solely based on engine capacity! Not on fuel efficiency. Instead of focusing on getting automakers to offer fuel efficient cars, they are just forcing them to sell cars with smaller engines.

This is not a good development. They are not giving excise breaks to companies which offer hybrid or electric cars and they are charging more taxes from companies which might be selling bigger cars which are more fuel efficient compared to companies which sell smaller cars with bad fuel efficiency.

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