German luxury car maker BMW on Thursday said that the Government should take a “pragmatic decision” on its proposal to introduce cess for SUV and large cars as the move could slow down the growth in premium car market.
“It has not happened as yet. They are discussing. So very difficult to say what it is at the moment. We just heard that they want to look at it. When they want to do ti and how it will happen it is not clear”, BMW India, President, Vikram Pawah told the news agency here.
SUVs, mid-sized, large and luxury cars that had become cheaper after GST rollout on July 1 will cost more as the GST Council last week approved a proposal to hike cess on them to 25 per cent, from 15 per cent now.
Under the new GST regime, cars attract the top tax rate of 28 per cent. On top of this, a cess of 1-15 per cent is levied to create a corpus to compensate states for loss of revenue from GST implementatiaon.
Hoping that the government will take a “pragmatic decision”, Pawah said if the rates remain same, there will be a growth in the premium car market that means overall revenue for the government will increase.