The Managing Director of the Mercedes Benz India, Roland Folger, said that the prices of the luxury car might go back to pre – gst level with the levy of cess on the final GST of 28%. He said, that the situation may go back to “square one” due to levy of cess for large cars and Sports Utility vehicles if government does not intervene.

Post implementation of GST, the prices of the (of Mercedes Benz cars) went down.  “Then we had cess.It is still an ordinance. It may be back to square one (if cess is levied). The price may go what was (prevailing) before GST”.

As per the GST law, the large cars with engine capacity of greater than 1,500 cc and SUVs with length of more than four metres and engine greater than 1,500 cc attracts cess of 15 % in addition to the top tax rate of 28 %. The overall tax incidence on locally-assembled luxury cars went down to 43% from 55% under GST regime. Thus it signified the job creation as well as increase tax collection from the segment as per the MD of the company.

Folger added “We have seen in India that if on the one hand something is given, then on the other hand something is taken back”.

Sources –Zee News

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