New 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.

Steel prices to increase 4 per cent; car tags to rise 2 per cent; tractor rates to drop by 3-4 per cent.

After 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.

It 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 week''s time.

General 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.

"The 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.