Customers make a beeline for luxury cars, SUVs before cess kicks in

After an increase in cess, these cars will be taxed at 53%

The Goods and Services Tax (GST) Council's August 30 announcement that the cess levied on luxury cars and sports utility vehicles (SUVs) seems to have taken some excitement away from carmakers. After the proposed cess increase, the cars will be taxed at 53 per cent. This would add even more to the price of big cars than the rollout of GST did two months earlier.

However, following the announcement, people planning to buy such cars in the near future are increasingly advancing their purchase. Since the announcement, companies have seen an increase in footfalls and inquiries. “For sure,