India to raise levy on luxury cars and SUVs — and car makers are unhappy
New Delhi — On Wednesday, India’s cabinet approved raising the maximum levy on luxury cars and sport utility vehicles (SUVs), drawing criticism from several car makers. Rahil Ansari, India head of German luxury car maker Audi, said the move could lead to a double-digit dip in sales and force the company to rethink its plans for the country. The levy is part of a nationwide goods and services tax (GST) launched in July to replace a multitude of provincial and national levies in the biggest tax reform in 70 years. Under the new sales tax, vehicles are taxed at 18% or 28%, with an additional levy of 15% on some types of cars. The cabinet passed an executive order, or ordinance, to raise the maximum levy to 25% from 15%, finance minister Arun Jaitley said. "The ordinance is only an enabling law. This does not mean the cess [levy] will automatically increase," Jaitley said, adding that a panel of federal and state finance chiefs that form the GST council will decide on the timing and amo...
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