New Delhi, 30 August(Wishav Warta): Almost all cars except small hatchbacks will soon cost more in India as the Union government cleared on Wednesday an ordinance to hike the cess on vehicles from 15% to 25%. The hike will apply to mid-size cars, premium hatchbacks, SUVs and luxury cars, which became cheaper under the new Goods and Services Tax system that was implemented on July 1.
Cess is an additional levy on cars that fall in the GST’s top tax bracket of 28%. The cess earlier ranged from 1-15%, with cheaper and less polluting cars such as small hatchbacks with frugal petrol engines attracting lower levy. The date for implementing the hike in the upper limit of the cess from 15% to 25% will be decided by the GST Council when it meets in Hyderabad on September 9, sources said.
