Luxury Car Cess

Waldenburg-Dresel said it was the frequent changes in policies and high taxation on luxury cars which was hampering the growth of the segment

Automobile firms, including Mercedes-Benz, Audi and JLR, today said the proposed hike in cess on luxury cars and SUVs will adversely impact growth momentum of the segment. They also criticised the government's "hurry to implement the hike in cess" saying a review could have been taken after six months when impact of GST would have been clearer. The Cabinet today approved promulgation of an ordinance to amend the GST compensation law to pave the way for increasing cess on mid and large cars to 25 per cent, from 15 per cent. "This decision, contradictory to the requirement of creating a sustained demand for the luxury car in this market, would rather affect the growth momentum adversely," Mercedes- Benz India MD & CEO Roland Folger said in a statement. The automotive segment has not even settled in to see the effect of the marginal relief in terms of rationalisation of taxes in the GST regime, he added. Folger further said the auto industry attracts one of the highest rate ...

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