At a time when most automakers in the country are hiking prices, Honda Siel Cars India said it is cutting rates of sedans by up to Rs 5,000 with effect from Sunday on account of the reduction in central sales tax. "We have received notification from the government on the central sales tax cut from 3% to 2% 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.