Luxury and Mid-Size Cars will be Cheaper

All prospective car buyers can now think for luxury and mid-size cars as these segments is likely to see a price slash. It is said that popular sedans like the Maruti SX4, the Honda Civic and luxury car may become cheaper by up to Rs 50,000.

Nothing is confirmed but the ministry of heavy industries and finance ministry is on discussion to waive off the specific excise duty charged on mid-size and top-end cars last year.

Cars with engine sized between 1,500-2,000cc were forced to pay an additional tax of Rs 15,000, whereas it was Rs 20,000 on all vehicles above 2,000cc engine. But as the tax was forced on ex-factory price of vehicles, the car manufacturers transferred the burden to the consumers with sales tax and other taxes. Now it is realized that such kind of tax planning does not make any sense and is unfair for some car segments.

Because of such tax structure even the sales were affected as it discouraged the consumers from buying cars like the Honda Civic and the Toyota Corolla. After the implication of the light tax structure, the price on these cars will come down by Rs 20,000 to Rs 50,000.

If this rule is put into practice, it will be a great offering for the buyer as well as the car manufacturers. It will attract more buyers that will in turn help the car industry to revive.

6 thoughts on “Luxury and Mid-Size Cars will be Cheaper”

The tax cut will certainly boost sales of luxury cars in India. However, it comes at the time when economy is in recession and people think twice to open their purse strings. I wonder if this will help boost luxury car sales in India.

It is a great news that the luxury cars will be cheaper. Hope the the government will soon implement this new tax structure. The car manufacturer have already increased the price and this will also push the sales.

Hope the prices of these cars really come down because in a time of 2 to 3 months i am going to buy a sedan.

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