The government has announced that it will levy an additional specific duty based on the engine displacement of cars sold in the country. Cars powered by engines below 1500cc will attract no extra duty, those with 1500-2000cc engines will attract an extra Rs 15000 per car and those above 2000cc will be slapped with an additional Rs 20000.
The government's move to charge more for more engine capacity is a good move, but it doesn't make too much sense when you consider that most engines in the country are quite fuel efficient, and some relatively big-displacement engines like the Laura's manage to get just as much out of a litre of fuel as many smaller-engined, lighter and less powerful cars. It also doesn't take into account forced induction, although that could be a deliberate move - turbocharging and supercharging usually manage to get more kilometers per litre than a naturally aspirated motor would for the same amount of power generated. And consider that cars like the Lexus RX 400h, should it ever be sold in India, will be fuel-efficient, have state-of-the-art technology and emit very few pollutants, but it'll attract gas guzzler tax based on its 3300cc engine, never mind the fact that it is a hybrid.
