SUVs, luxury cars to cost more as Cabinet clears cess hike

The move adversely impacts Mahindra & Mahindra, Toyota, and luxury carmakers

The Cabinet has approved increasing the cess on mid-size, large cars and SUVs to 25 per cent from the current 15 per cent, television channels reported on Wednesday, citing government sources. 

Prices of most SUVs were cut between Rs 1.1 lakh and Rs 3 lakh following the implementation of GST, which subsumed over a dozen central and state levies like excise duty, service tax, and VAT from July 1. But with the hike in cess, the cuts will be reversed.

The GST Council, the apex tax rate setting body under the Goods and Services Tax (GST) regime, had on August