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Passenger cars to become expensive, additional taxes in Budget 2016-17

Passenger cars to become expensive, additional taxes in Budget 2016-17
Ninad Mirajgaonkar Ninad Mirajgaonkar Monday 29 February 2016, 17:55 PM

The Government of India has introduced additional taxes on the passenger cars in the Union Budget 2016-17. This means, immediate price hike in all the new cars that will be rolled out of the factory. The taxes have been imposed in slabs with limited burden on smaller cars and maximum on premium vehicles.

The passenger cars costing over Rs 10 lakh will now have to bear additional 1 per cent tax. As a result certain variants of the cars in the C-Segment like the Honda City and the Volkswagen Vento will be affected along with the SUVs like the Hyundai Creta and Renault Duster. The tax is applicable to all vehicles above this price tag – both cars manufactured here and CBUs.

Additionally all cars will be charged infrastructure cess in different slabs. A cess of 1 per cent will be levied on the small petrol, CNG and LPG cars. The select capacity diesel cars will have 2.5 per cent cess, while the large vehicles will attract 4 per cent cess. All of the above comes into effect immediately.

 

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