Recently our Indian Government has levied heavy taxes on vehicles such as cars. It also effects middle class people as taxes has also hit compact and affordable cars and cars like which are used for commercial purposes like Maruti Suzuki Swift Dzire, Wagon -r in Ola, Uber. It’s done after 2019 or 2020 in Covid pandemic.
Earlier also there were taxes, like at the time of purchase of new car we pay road tax, cess registration tax etc. For getting our vehicle number from Regional Transport Office (RTO) which differentiates between – ex-showroom price and on road price. For example we will take Toyota Fortuner that had facelift in 2015 and was selling at the price range of 25 to 35 lakhs then it started increasing slowly to 40 lakhs and after covid it reached to 50 to 60 lakhs on road top model of it. Its manufacturing price from Toyota is 25 lakhs and remaining amount is taxes levied by government. So it shows that government is charging 50% to 52% taxes on and many few people have knowledge about this. In Hyundai Creta also its manufacturing price is 12 lakhs of top model but its on road price is 24 lakh exactly double. Tax breakup is its base price of the top model is Rs 14,13,655 and adds taxes like GST 28% which is Rs 3,95,824, Cess 17% which is Rs 2,40,321, TCS 1% which is Rs 20,498 and road tax which is Rs 3,23,317 for RTO Mumbai it varies by city to city.
Not only in these, all the cars are effected by taxes due to which prices of cars have increased. But now in 2025 Government is planning to scrap its 28% tax policy by Oct-Nov for compact cars only. Premium and luxury cars will only have 28% tax on it which is a big news.
Nice Info