SUVs to cost more? Luxury car firms lash out at govt on cess flip-flop
Shocks and surprises have not abated for the domestic car industry. There was a short-lived euphoria after the goods and services tax (GST) roll-out lowered the levy on passenger vehicles, especially luxury cars and sports utility vehicles. Now the manufacturers are staring at a situation where prices could be higher than those in the pre-GST regime. The GST Council has recommended an amendment to increase the cess on all passenger vehicles above four metres and with an engine capacity of 1,500 cc and above to a peak of 25 per cent, from 15 per cent now. Such vehicles currently attract a GST of 28 per cent and a 15 per cent cess. The Centre will have to amend the Schedule to Section 8 of the GST (Compensation to States) Act, 2017, for this increase to take effect. The increase in cess would be finalised by the GST Council . The move adversely impacts M&M, Toyota, and luxury carmakers such as Mercedes, BMW, Audi, and JLR. The decision has upset the growth p...