Prices of cars over Rs 10 lakh in India increase by one per cent
As announced in the 2016 Union Budget, the one per cent luxury tax levied on vehicles costing over Rs 10 lakh will be applicable from today. This tax, which is to be collected by the dealer, will be added to the ex-showroom price of the vehicle. There will be also an additional 0.5 per cent Krishi Kalyan cess, aimed at collecting money for agricultural and farmer welfare. This cess takes the tax on services such as labour and insurance premium to 15 per cent from last year's 14.5 per cent.
Auto manufacturers including Hyundai, Honda and Maruti Suzuki had already increased prices of their vehicles to offset the infrastructure cess that was levied in this year's Union Budget. Now, all the manufacturers have revised prices of their vehicles that cost over Rs 10 lakh to include the luxury tax and will announce them shortly.
Also from OVERDRIVE on the 2016 Union Budget:
- Mahindra XUV500 to be discontinued, could return as two-row XUV700
- Electric vehicles - Why they don't have a gearbox and how it's possible to go as fast backwards, as forward
- 2021 Hyundai Alcazar unveiled, engine details revealed
- Upcoming Mahindra XUV500 replacement to be called XUV700
- Maharashtra lockdown: How to maintain your vehicle while you stay at home