The government must not impose high taxes on big SUVs and cars just because they are luxury vehicles, said Jaguar Land Rover (JLR) India president & MD Rohit Suri.
Instead, he added, a reasonable way must be considered to help expand the market and contribute more in employment creation.
Noting that taxes on luxury vehicles in India are among the highest in the world, Mr. Suri said this had restricted volume growth thereby preventing companies from assembling more models here. “After the cess increase, taxes on SUVs have gone up from 43% to 50%. This is one of the highest in the world. This kind of... taxation does not allow the market to expand. I hope the government will look into this,” Mr. Suri said.
In September, the Centre had raised cess by 5% on large cars and 7% on SUVs, taking the total incidence of taxation to pre-GST levels.
