Union Cabinet approves hike in cess on luxury cars, SUVs
Authored By Wion Web Desk
Published: Aug 30, 2017, 01:51 IST | Updated: Aug 30, 2017, 01:51 IST
Union Cabinet approves cess hike on luxury cars
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The rate has been hiked to 25% from the earlier 15%
The Union Cabinet has approved a GST Council proposal to hike cess on mid-sized, large cars and SUVs to 25 per cent from 15 per cent.
Under the GST regime, cars are taxed at the highets tax bracket of 28 per cent. The cess is over an above that and helps in buildinga corpus to compensate the states for any loss in the implementation of GST.
The earlier cess of 15 per cent led to a reduction in prices vis-a-vis total incidence in pre-GST regime.
After the GST was introduced, prices of most of the SUVs were cut between Rs 1.1 lakh and Rs 3 lakh.
With the additional cess getting Cabinet's nod, the prices of SUVs and luxury segment vehicles are set to rise.