Yes. You got the point right. Buying cars in India will be costlier now and all credit goes to the Union Budget 2016-17. Finance Minster Arun Jaitley has presented the Union Budget 2016-17. This union budget can be termed as Pro-Poor Budget and Pro-Farmer Budget. The Finance Minister has given reliefs to poor segment, farmers, and small tax-payers. But, the so-called leading industry of the country, the auto industry has not got any good news.
In Union Budget 2016, Mr Arun Jaitley has announced a 1% additional cess on luxury cars exceeding the price of Rs. 10 lakhs.
"1% additional tax will be charged on luxury cars above Rs 10 lakh," Jaitley announced.
The Finance Minister has also made small segment cars costly for the common man. In order to check the pollution, there will be 1% infra cess on small petrol cars and 2.5 % cess on diesel cars. This move will pull down the demand for diesel cars in the country.
This Union Budget will levy an additional 4% cess on SUVs and high-capacity passenger vehicles.
Get Highlights of Union Budget 2016-17 and full coverage of Budget Speech. Check what will be costly and what are the reliefs for middle-class people. Stay tuned.