Date:03/03/2007 URL: http://www.thehindubusinessline.com/2007/03/03/stories/2007030301450200.htm

Back Honda cars to cost more

Our Bureau

New Delhi, March 2

Honda Siel Cars India Ltd is planning to raise prices of its vehicles by about 1-1.5 per cent as it will start charging Central Sales Tax on its models from the next month. The tax holiday that Honda's Uttar Pradesh plant enjoys is ending this month. ``Since inception, we have been exempted from the 4 per cent Central Sales Tax in Uttar Pradesh related to the amount of investments we make in the State. That is coming to an end. We are still working out the exact details and will absorb some part of the increase,'' a company official said. Since the tax holiday is ending in the middle of March, the company plans to start charging the tax from its customers, thereby increasing the prices of its sedans — City, Civic and Accord.