Luxury Cars, Old Or New To Attract 1 Percent Duty June Onward

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Cars are getting expensive in India, specially the luxury ones. Now, any luxury car, no matter new or old that is above Rs. 10 lakh will attract 1 percent additional duty this month (June) onward.

The additional 1 percent tax will be payable by the end customer to the dealer or to the private seller from whom the car is being purchased from. Used car dealers say that the 1 percent tax will not harm the sale of used luxury cars.

Nagendra Palle, the CEO of Mahindra First Choice Wheels, says, "For us the volume of used vehicles in the over-10-lakh price range is less than 2% and this is not a price sensitive market. In that segment, if the customer is paying 14-20 lakh for the vehicle, they will pay the extra 1%. This duty would not deter their decision ."

Read more on: #auto news
Story first published: Friday, June 3, 2016, 14:30 [IST]
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