TAX BREAKS FOR CARS RUNNING ON LPG, CNG

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Just as the news of increase in fuel prices breaks out, government is planning to cut excise duty on small cars running on LPG and CNG by 8%. The small car definition is as it was stated in this year's budget.

The duty cut, of course would make no difference for cars that are retro-fitted with LPG or CNG. Interestingly, there is no car currently available in the market that is factory fitted to run on CNG or LPG. But Maruti is soon rolling out Wagon R which runs on LPG. Government is hoping that the duty cut will encourage other manufacturers also to look into alternate fuel options, and hence, may be eventually reduce some fuel consumption and pollution on our roads.