Delhi: A day after finance minister P Chidambram imposed
a 2 per cent education cess on all taxes, companies in
various industries were busy revising their prices.
prices to increase 4 per cent; car tags to rise 2 per
cent; tractor rates to drop by 3-4 per cent.
Maruti Udyog hiked car prices by 0.38 per cent, Mahindra
& Mahindra raised the prices of its Scorpio by Rs
2,370, Bolero by Rs 1,800-1,900 and its three-wheelers
by Rs 370. Ford has hiked the prices of the Ikon by Rs
2,500 and the Endevor by Rs 10,000.
is learnt that the Tata Motors brass is meeting early
next week to take a decision on the matter. Sources close
to Tata Motors said new prices could be announced in a
Motors India, too, is working out the implications of
the cess, and is likely to come out with 2 per cent higher
prices for its cars in another 2-3 days. Hyundai is also
expected to effect price hikes between Rs 1,250 for the
Xing and Rs 4,500 for the Sonata.
2 per cent cess on customs is not modvatable. So, companies
will at one time be paying cess on cess," an automobile
industry source said, explaining why the education cess
was forcing companies to jack up prices.