Consumers can now enjoy cheaper cars, two-wheelers, set top boxes, while they will have to pay more for their smoke and mobile handsets, thanks to Budget proposals made by Finance Minister P Chidambaram on Friday.

Mr Chidambaram has ensured that consumers have much more savings in taxes to be able to afford many luxuries such owning small or hybrid cars by proposing lenient levies on personal income that could help an individual save up to Rs 44,000 per year.

The Finance Minister, in the Budget tabled in the Parliament on Friday, proposed to reduce excise duty on small cars from 16 per cent to 12 per cent. Similarly, he has proposed to remove excise duty completely on electric cars, while the same on hybrid ones would come down to 14 per cent from 24 per cent earlier.

Two-wheelers buyers can also expect reduced prices as the Finance Minister proposed to cut excise duty by four per cent to bring it down to 12 per cent.

With summers approaching, the government has sought to take the heat off packaged tender coconut water by completely exempting excise duty on it. The Budget also proposes to exempt excise duties on milk containing edible nuts, tea, coffee pre-mixes and puffed rice.