Maharashtra Govt. has hiked vehicle tax. Sad for highend buyers
A sad news for High end Vehicle buyers in Maharashtra. The Maharashtra Government has hiked the motor vehicle tax which has brought some tension to premium car / bike makers and dealers off guard.
Till now all vehicles were taxed at the rate of 7 percent, which is now changed to a 3 tier tax system. The 7 per cent will now be applicable to vehicles costing under Rs 10 lakh, going up to 8 per cent for those between Rs 10-20 lakh and 9 per cent for vehicles priced at over Rs 20 lakh.
“This takes away a substantial part of the benefits that came with the Centre’s stimulus package. We were just beginning to see the momentum set by the excise duty cut and are very disappointed by this move,” said Mr Suhas Kadlaskar, Director (Corporate Affairs), Mercedes-Benz India.
Maharashtra, largely led by Mumbai and Pune, accounts for 30 per cent of total sales of Mercedes cars. Prices, on an average, range from Rs 26 lakh to Rs 70 lakh, which means that they will now be dearer by Rs 52,000 to Rs 1.40 lakh thanks to the hike in motor vehicle tax.
“This is not a small amount and will impact our sales,” added Mr Kadlaskar. Other luxury car makers such as Audi and BMW also will see prices of their models increase and also the prices of premium motorcycles.