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Regular-article-logo Saturday, 12 July 2025

CARS FOR A SONG AT GWALIOR SHOW 

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BY AMIT CHAKRABORTY Published 25.12.00, 12:00 AM
Calcutta, Dec 25 :    Calcutta, Dec 25:  Gwalior beckons car lovers. A bonanza awaits the them in this princely town of Madhya Pradesh, which has decided to offer hefty sales-tax rebates on vehicles that are sold at a mela to be organised there from January 1. Automobile manufacturers and dealers are expecting a sales spike. They are busy with arrangements preparing to open shops at the month-long Mela. A saving of Rs 6,000 on a purchase of Rs 1 lakh will be a tempting proposition for potential buyers. Not only are they flocking to the central India's fort-flanked town of the Scindias, dealers have been advising their clients to visit the mela to snap up cars at bargain-basement prices. The Madhya Pradesh government has issued a notification, allowing concessional sales tax on various commodities and manufactured items, in certain cases to the extent of 50 per cent of the rate applicable nationally, for sales at the mela ground next month. However, the move runs foul of the existing policy of having a uniform sales tax of 12 per cent. Under the uniform sales tax policy regime introduced after a consensus among all state governments in the country early this year, the sales tax rate on passenger cars and commercial vehicles has been pegged at a flat 12 per cent all over the country. Expecting a customer rush to Gwalior where buyers will have the chance to make a big saving on their vehicle purchases, several dealers from various states, apart from the automobile companies, have decided to set up stalls at the mela. According to sources in automobile industry and cars dealers in various states who have decided to participate at the fair, customers are being advised to book their cars at the mela to enjoy concessional sales tax. A few dealers could even book cars at the mela for subsequent delivery at their respective states and yet save 50 per cent of the sales tax. Gwalior Mela, traditionally an annual affair in the town, has become more attractive this time because it is being organised after eight years. The Congress government under the chief ministership of Digvijay Singh is pulling out all stops to attract people to the mela and introduced concessional sales tax to make it commercially successful. But car dealers sources, at the same time, said the concessional tax notice issued by the Madhya Pradesh government had already been leaked to many state governments and the state chief minister might have to come up with a convincing explanation for flouting the consensus.    
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