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CI_Sept17Topsy-turvy Logic

implemented from the first of July and before the new tax has completed two months, the GST counsel wants to increase the cess on luxury cars, that is, any car that measures more than four metres in length. According to their definition any car that is more than four metres in length is termed as a luxury car, which means that the Maruti Ciaz, Honda City, Toyota Etios or the new Hyundai Verna are all ‘luxury cars’. This is ridiculous; how can any of these be called luxury cars? When will the authorities stop this policy flip-flop? This is a big headache for the manufacturers and most heads of companies have given vent to their disappointment over this policy.

When will the authorities stop this policy flip-flop?

The Maharashtra government has already increased the road tax in lieu of the reduction in the ex-showroom price of new cars after GST. They have put a cap of Rs 20 lakh for road tax so that people start registering their cars in the state. As most people who own cars costing in excess of Rs 1 crore are well-connected, the local authorities cannot take action against the owners of high-end cars; they can only nail the middle-class citizen.

This month we have the exclusive first drive of the all-new Hyundai Verna. The new Verna has improved in all departments: from the steering feel, feedback, NVH level, and driveability.


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