PTI

New Delhi, Apr 23: Country's biggest car maker Maruti Suzuki has reduced the price of its products by up to Rs 5,000 following increased tax sops offered by Haryana, where its facilities are located.

"We have passed on the benefit of the reduction in sales tax by Haryana from 3 per cent to 2 per cent effective April 1 to dealers, who in turn have passed it on to customers," a company official said.

The reduced sales tax would translate to a price cut in the range of Rs 3,000-Rs 5,000 across various models, the official added.

Haryana had in the beginning of the month reduced sales tax from 3 per cent to 2 per cent coinciding with the reduction in central sales tax from 4 per cent to 3 per cent.

The reduction in price could not have come at a better time for the leading car maker of the country, when the psychological effect of higher interest rates are making customers postpone their purchases.

Maruti Udyog managing director Jagdish Khattar had said that higher interest rates could have a short term impact on sales as customers tend to hold back, but in the long term they should not make a big difference.