SUVs to cost more: Luxury car firms lash out at govt on cess flip-flop

Most say they will review their Make in India plans as prices may top pre-GST level

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