Owing to the reduction in Central Service Tax, Honda have slashed the prices of city and civic. “We have received notification from the government on the central sales tax cut from 3 per cent to 2 per cent announced in the Budget. Hence we are reducing the prices of our models City and Civic to pass the benefit to consumers,” a Honda Siel Cars India official said. The City will become cheaper by Rs 3,000 and the Civic by Rs 5,000. However the price of the CRV will remain unchanged as it does not qualify for the benefit of CST reduction.