Sports utility vehicles (SUVs) under R10 lakh may be spared the 3% excise duty hike announced in the Union Budget. The price cap is being proposed to maintain demand for rural and commercially-focused SUVs such as the Mahindra Bolero, Tata Sumo, Chevrolet Tavera and Force Trax in a slowing economy, and is being considered by the finance ministry on the request of the auto industry and the ministry of heavy industries.Some urban middle-class SUV choices like the Mahindra Scorpio, Renault Duster (petrol) and the upcoming Ford EcoSport too may escape the duty hike. In his Budget, finance minister P Chidambaram had increased the excise duty on SUVs from 27% to 30% “since they occupy greater road and parking space and ought to bear a higher tax”.While ruling out any roll-back, the finance ministry had asked the auto industry to figure out a way to separate SUVs used by the middle class from premium models.

Source - http://www.financialexpress.com