Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Xiaomi
Adani Group
Life Insurance Corporation of India
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Luxury cars/SUVs to cost more as govt okays cess hike
Business

Luxury cars/SUVs to cost more as govt okays cess hike

Luxury cars/SUVs to cost more as govt okays cess hike
Written by Gogona Saikia
Aug 30, 2017, 05:25 pm 2 min read
Luxury cars/SUVs to cost more as govt okays cess hike

The Centre today approved a 10% hike in cess on luxury cars and SUVs - from 15% to 25%. This is in addition to sales tax. The decision came about after total tax incidence on motor vehicles fell with the launch of GST. It happened due to an 'anomaly' that crept in while GST rates were being decided; producers could effectively pocket unauthorized gains as a result.

Do you know?
Why the raise?

Before the GST, the total tax incidence on motor vehicles was about 52-54.72%. Post-GST, it came down to 43%. A 25% cess rate was needed to make up the gap, but the ceiling on compensation cess was 15% earlier. Now it has been raised.

Impact
Which cars will be affected?

Vehicles falling under headings 8702 and 8703, to which the hike would apply, include mid-segment vehicles, SUVs, large cars and motor vehicles which can carry not less than 10 and not more than 13 people. Hybrid vehicles with engine capacity over 1500cc and mid-segment hybrid cars below 1500cc are also included. The GST Council will decide from when the hike will be implemented.

Information
But manufacturers say the move has many drawbacks

Luxury vehicle manufacturers including Toyota Kirloskar Motor, Mercedes-Benz, Audi and BMW have protested the decision. They say such a shift would weaken the spirit of liberal market dynamics, throw long-term plans into uncertainty, and ultimately affect expansion under the 'Make in India' initiative.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Gogona Saikia
Gogona Saikia
Mail
“I may be on the side of the angels, but don’t think for one second that I am one of them.” Delhi University. Freethinker. “Social justice warrior”.
Latest
India
BMW
GST
Toyota Kirloskar Motor
Latest automobiles
Related
Latest
Gyanvapi row: Delhi University professor arrested over 'derogatory' Shivling post
Gyanvapi row: Delhi University professor arrested over 'derogatory' Shivling post India
Hero Splendor Plus XTEC debuts in India at Rs. 73,000
Hero Splendor Plus XTEC debuts in India at Rs. 73,000 Auto
MEA confirms 'illegal' Chinese construction of two bridges in Pangong
MEA confirms 'illegal' Chinese construction of two bridges in Pangong India
'Dhaakad' review: Kangana Ranaut is captivating in hardcore action extravaganza
'Dhaakad' review: Kangana Ranaut is captivating in hardcore action extravaganza Entertainment
International Tea Day: Exploring India's position in the global market
International Tea Day: Exploring India's position in the global market Lifestyle
India
COVID-19: India reports 2,364 fresh cases, 10 more deaths
COVID-19: India reports 2,364 fresh cases, 10 more deaths India
Centre eases ban on wheat export: Here are more details
Centre eases ban on wheat export: Here are more details Business
Global wheat prices surge by 6% after India's export ban
Global wheat prices surge by 6% after India's export ban Business
In surprise move, Chinese media defends India's wheat export ban
In surprise move, Chinese media defends India's wheat export ban World
COVID-19: India logs 2,202 new cases; 27 more deaths
COVID-19: India logs 2,202 new cases; 27 more deaths India
More News
BMW
Limited-run BMW M4 CSL debuts with sporty looks, 543hp powertrain
Limited-run BMW M4 CSL debuts with sporty looks, 543hp powertrain Auto
2023 BMW 3 Series, with better looks and features, revealed
2023 BMW 3 Series, with better looks and features, revealed Auto
New BMW 3 Series teaser reveals grille design and headlights
New BMW 3 Series teaser reveals grille design and headlights Auto
BMW 3 Series (facelift) previewed in leaked images: Check features
BMW 3 Series (facelift) previewed in leaked images: Check features Auto
2023 BMW iX1 spied on test; design details revealed
2023 BMW iX1 spied on test; design details revealed Auto
More News
GST
What does it mean for films to be tax-free?
What does it mean for films to be tax-free? Entertainment
GST Council decides to postpone tax hike on textiles
GST Council decides to postpone tax hike on textiles Business
GST changes from January 1: Here's how it impacts prices
GST changes from January 1: Here's how it impacts prices Business
Petroleum Minister explains why petrol prices are not coming down
Petroleum Minister explains why petrol prices are not coming down Politics
Swiggy, Zomato will now collect GST. Does it affect you?
Swiggy, Zomato will now collect GST. Does it affect you? Business
More News
Toyota Kirloskar Motor
Toyota Urban Cruiser review: Is it better than Vitara Brezza?
Toyota Urban Cruiser review: Is it better than Vitara Brezza? Auto
Blaming "we don't want you" taxes, Toyota halts India expansion
Blaming "we don't want you" taxes, Toyota halts India expansion Business
Ahead of launch, Toyota Urban Cruiser's specifications, booking details revealed
Ahead of launch, Toyota Urban Cruiser's specifications, booking details revealed Auto
Toyota Fortuner's limited-run TRD edition launched at Rs. 35 lakh
Toyota Fortuner's limited-run TRD edition launched at Rs. 35 lakh Auto
Toyota recalls 6,500 units of Glanza over fuel pump issue
Toyota recalls 6,500 units of Glanza over fuel pump issue Auto
More News
Latest automobiles
Mercedes-Benz showcases Vision AMG concept, the future of performance mobility
Mercedes-Benz showcases Vision AMG concept, the future of performance mobility Auto
SKODA KUSHAQ Active Peace variant launched at Rs. 10 lakh
SKODA KUSHAQ Active Peace variant launched at Rs. 10 lakh Auto
Jeep Meridian SUV debuts in India at Rs. 30 lakh
Jeep Meridian SUV debuts in India at Rs. 30 lakh Auto
Is Keeway K-Light 250V better than Royal Enfield Meteor 350?
Is Keeway K-Light 250V better than Royal Enfield Meteor 350? Auto
2023 Lexus RX SUV to be revealed on June 1
2023 Lexus RX SUV to be revealed on June 1 Auto
More News
Related
After Vijay, court schools Dhanush for seeking car's tax exemption
After Vijay, court schools Dhanush for seeking car's tax exemption Entertainment
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022