Luxury cars, SUVs to get costlier as Cabinet approves ordinance to hike cess

Agencies
August 30, 2017

New Delhi, Aug 30: 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.

The upper limit rate is applied to cars such as Toyota Fortuner (an SUV), sedans from BMW, Audi and Mercedes, and mid-size sedans such as the Honda City.

Cars smaller than 4 metres attract 1% cess if they have a petrol engine with a capacity of up to 1,200cc; or 3% if they run on a diesel engine smaller than 1,500cc. The cess on these vehicles will remain unchanged.

And despite the hike in cess, mid-segment cars, large cars and SUVs will still be cheaper than what they cost before GST kicked in.

The total tax rate on these cars before GST was in the bracket of 52-54.72% to which 2.5% was added on account of central sales tax, octroi etc.

Against this, after GST, the total tax incidence came down to 43%.

Consequently, prices of SUVs, for instance, fell by Rs 1-3 lakh after GST was rolled out and some luxury cars saw as much as Rs 10 lakh shaved off their tags after GST rolled out.

It was this decrease that led the GST Council to decide on August 5 that the cess needs to be hiked.

The money collected from this cess is used by the central government to compensate states for any revenue loss under GST.

For raising the cess, the government will eventually need to amend the GST (Compensation to a State) Act, 2017. For now, it will do this through an ordinance, which will need to be cleared by the President.

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News Network
July 1,2020

Washington, Jul 1: The United States has approved four coronavirus vaccine candidates for clinical trials, Food and Drug Administration (FDA) head Stephen Hahn told reporters.

"Four vaccines have been approved for moving into clinical trials... and another six are in the pipeline for us to review," Hahn said during a press briefing on Tuesday.

The US Administration launched in May Operation Warp Speed, a joint project of Health and Defense Departments, which aims to deliver 300 million doses of a vaccine for COVID-19 by January 2021.

The country's top pandemics expert Anthony Fauci warned on Tuesday, however, that there is no certainty the United States will be able to develop a vaccine against COVID-19 that works and will be safe.

Data on vaccine effectiveness, he added, may be available in the winter or early next year.

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News Network
February 14,2020

Feb 14: India will never forget the martyrdom of the security personnel killed in last year's Pulwama attack, Prime Minister Narendra Modi said on Friday.

He termed the slain security personnel were "exceptional individuals" who devoted their lives to serving and protecting the nation.

On February 14 last year, a convoy of vehicles carrying security personnel on the Jammu-Srinagar National Highway was attacked by a vehicle-borne suicide bomber at Lethpora in Pulwama district of Jammu and Kashmir. Forty Central Reserve Police Force (CRPF) personnel were killed in the attack.

"Tributes to the brave martyrs who lost their lives in the gruesome Pulwama Attack last year. They were exceptional individuals who devoted their lives to serving and protecting our nation. India will never forget their martyrdom," tweets PM Modi one year since the Pulwama attack.

"I pay homage to the martyrs of Pulwama Attack. India will forever be grateful of our bravehearts and their families who made supreme sacrifice for the sovereignty and integrity of our motherland," tweets Union Home Minister Amit Shah.

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News Network
March 7,2020

New Delhi, Mar 7: Prime Minister Narendra Modi turned emotional on Saturday when a woman beneficiary of his government's generic medicine programme told him that she had seen God in him.

Dehradun-resident Deepa Shah, who suffered paralysis in 2011, was interacting with the prime minister through video-conference on the occasion of Jan Aushadhi Diwas.

"I have not seen god, but I have seen God in you," she said, tears rolling down her eyes.

Modi was visibly emotional as the woman repeated her remark.

She also thanked the Uttarakhand chief minister and others who had helped her all along and said doctors had once told her that she cannot be cured.

"But on hearing your voice I have become better," she told Modi while profusely thanking the prime minister for his efforts to reduce the cost of medicines.

An emotional prime minister paused for a moment before telling her that it was her courage that had won over her disease and that she must carry on with the spirit.

Shah was expressing her plight and how she had suffered due to high cost of medicines after she suffered from paralysis in 2011 and has now started saving Rs 3,500 every month after benefitting from the government's low-cost generic medicines programme.

Soon after Shah rose to express her views, Modi asked her to sit and speak as he said she was uncomfortable while standing.

"You have defeated disease with your own will power. Your courage is your god and that same courage has given you the strength to emerge from such a big crisis. You should carry on this confidence in you," Modi told her.

He said some people still keep spreading rumours about generic medicines, going by their past experience, wondering how can medicines be available so cheap and that there must be something wrong with the medicine.

"But, by seeing you countrymen would gain confidence that there is nothing wrong in generic medicines. These medicines are not at all of inferior quality than any other medicine. These medicines have been certified by the best laboratories. These medicines are made in India and is 'Make in India' and are cheap," the prime minister said.

He said there is demand for generic medicines from India across the world and the government has made it mandatory for doctors to prescribe generic medicines to patients, unless necessary.

Comments

Sameeksha
 - 
Monday, 9 Mar 2020

Wowww so emotional... Lol .really god in you??? Drama king and queen

angry indian
 - 
Sunday, 8 Mar 2020

in 2002 riot we have seen shaitan in you..how come shaitan become GOD...

 

did he put atleat one tear for his mother, did he feel sad when pregnant muslim woman brutally murdered..

this guy is 21st century dajjal..

Suresh SS
 - 
Sunday, 8 Mar 2020

Big Nautanki, Dramebaz

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