The airwaves have been abuzz with the newest levy from the Government of India – the Goods and Services Tax (GST). Contrary to what you might have expected, though, this new tax makes something cheaper – your favourite luxury car!
You got that right! Currently, the effective tax you pay for a luxury car is in the range of 52-55 per cent. However, when the GST is rolled out, luxury cars will attract a rate of 28 per cent plus a maximum cess of 15 per cent – implying that the maximum duty you would end up paying would be 43 per cent. A saving of 9-12 per cent may seem tiny, but on a luxury car that does cost big bucks, it adds up to quite a bit!
And, it gets better! Luxury car sales were expected to slow down in June, as most buyers are likely to wait for the GST and the resultant lower prices. Some luxury car manufacturers – in particular, Mercedes-Benz, Audi and BMW – took a step further and lowered their prices immediately i.e. well ahead of the official GST roll-out (on July 01, 2017). You can, thus, now buy your favourite Mercedes-Benz, Audi or BMW for a price that is lower by 4-12 per cent!
So whip out that chequebook, sign on the dotted line, and drive away to the horizon in your favourite luxury chariot!