“To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”
EXTENDED ESSAY IN ECONOMICS
“To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”
TOTAL WORD COUNT: 3986
“To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”
ABSTRACT
This study investigates into the case of the SUV market and manufacturers in the major metro cities of India. For answering the question, “To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?” the excise duty has been defined. An excise or excise tax is a type of tax levied on goods produced or sold within the country. The Government budget,2013 stated that SUVs now would attract a higher 30% hike in excise duty as compared to 27% last fiscal. It was surprising that the sales or demand did not show an appreciable growth in the last two fiscals.
The changes in tax or excise duty is a deterrent to economic growth as the demand for SUVs would and has seen a slump following the increase in prices of SUVs. The impact of the reforms in excise duty is analysed on the demand and supply of SUVs, with a focus on Innova by Toyota and Renault’s Duster. It is also understood that the changes in excise duties has been implemented for the last two fiscals and assuming there is no change in the other factors, this research will not try to quantify other macroeconomic indicators or their role in the changes in the SUV market but limits to the direction of the change consequent to the reforms.
The impact of any changes in the reforms is assumed to be advantageous to the economic environment to stimulate investments and better and efficient utilisation of resources.
The research question that arises from this is whether the hike in excise duty has impacted the demand for SUVs in India and to what extent particularly in the first two quarters of 2013.
(291
“To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”
TOTAL WORD COUNT: 3986
“To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”
ABSTRACT
This study investigates into the case of the SUV market and manufacturers in the major metro cities of India. For answering the question, “To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?” the excise duty has been defined. An excise or excise tax is a type of tax levied on goods produced or sold within the country. The Government budget,2013 stated that SUVs now would attract a higher 30% hike in excise duty as compared to 27% last fiscal. It was surprising that the sales or demand did not show an appreciable growth in the last two fiscals.
The changes in tax or excise duty is a deterrent to economic growth as the demand for SUVs would and has seen a slump following the increase in prices of SUVs. The impact of the reforms in excise duty is analysed on the demand and supply of SUVs, with a focus on Innova by Toyota and Renault’s Duster. It is also understood that the changes in excise duties has been implemented for the last two fiscals and assuming there is no change in the other factors, this research will not try to quantify other macroeconomic indicators or their role in the changes in the SUV market but limits to the direction of the change consequent to the reforms.
The impact of any changes in the reforms is assumed to be advantageous to the economic environment to stimulate investments and better and efficient utilisation of resources.
The research question that arises from this is whether the hike in excise duty has impacted the demand for SUVs in India and to what extent particularly in the first two quarters of 2013.
(291