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Price of SUVs and luxury vehicles to go up
Posted on: 31/Aug/2017 5:29:48 PM
It is likely that the increase in sales and reboots of the auto industry seems to have just lived short, as the Narendra Modi government has given its nod to impose levy on luxury cars and sports utility vehicles of the range 25 percent from the previous 15 percent.
This levy will be added to the taxes imposed on sale of luxury vehicles, say reports. This initiative is likely to hit car prices hardly within a month of implementing price cut on reduced taxation by GST.
The tax rate on luxury cars and SUVs under the Goods and Services Tax is 28 percent. With extra cess of 15 percent, it will take the total tax amount to 43 percent. Furthermore additional cess of 25 percent will make it 53 percent that is about the same taxation on such vehicles before implementation of GST.
The GST council gave its nod to increase cess on SUV, mid and large sized luxury cars on 5th August all of which had got cheaper after 1st July when GST was rolled out. This increase in cess implies amendment of section 8 of the GST Act, 2017. Upon amending the law, the exact date of increasing cess will be announced from the end of GST Council.
