Car manufactures have not passed on the full impact of removal of 2.5 per cent federal excise duty (FED) and cut in GST (general sales tax) to 16 % to the consumers in price reduction of locally assembled cars.
This has unveiled the face of car maker companies. Car makers are enjoying tax benefits and should share benefits with buyers. It is strange that these big manufactures always say that high prices are because of high taxes but as now government has waived FED and reduced GST in 2011-12 Budget, these manufactueres are not sharing it with consumers.