<p>The Union Cabinet on Wednesday cleared an ordinance to hike the cess to 25% on all vehicles which until now attracted a cess of 15%.<br /> <br />The move will increase the prices across the segments from mid-size cars to SUVs and luxury vehicles.<br /><br />Briefing reporters, Finance Minister Arun Jaitley said the hikes were not across the board, but further clarification from the revenue officials suggested all vehicles which attracted 15% cess post GST will now come under 25%.<br /> <br />At present, most of the mid-segment cars, large vehicles, SUVs and even hybrid cars attract 15% cess over and above 28% tax. Cars smaller than four metre with petrol engine attract 1% cess, with diesel engine the cess is 3%.<br /> <br />The date for implementing the hike in the cess may be decided by the GST Council when it meets in Hyderabad on September 9.<br /><br />“It is only an attempt to restore prices of those luxury vehicles which had become cheaper after GST regime. The objective of a taxation policy cannot be to make luxury items cheaper and essential commodities costlier,” Jaitley said.</p>
<p>The Union Cabinet on Wednesday cleared an ordinance to hike the cess to 25% on all vehicles which until now attracted a cess of 15%.<br /> <br />The move will increase the prices across the segments from mid-size cars to SUVs and luxury vehicles.<br /><br />Briefing reporters, Finance Minister Arun Jaitley said the hikes were not across the board, but further clarification from the revenue officials suggested all vehicles which attracted 15% cess post GST will now come under 25%.<br /> <br />At present, most of the mid-segment cars, large vehicles, SUVs and even hybrid cars attract 15% cess over and above 28% tax. Cars smaller than four metre with petrol engine attract 1% cess, with diesel engine the cess is 3%.<br /> <br />The date for implementing the hike in the cess may be decided by the GST Council when it meets in Hyderabad on September 9.<br /><br />“It is only an attempt to restore prices of those luxury vehicles which had become cheaper after GST regime. The objective of a taxation policy cannot be to make luxury items cheaper and essential commodities costlier,” Jaitley said.</p>
