GST council approves hike in luxury car cess

Sports utility vehicles (SUVs) and luxury cars, which became cheaper after the rollout of the goods and services tax (GST) from July 1, 2017, may now cost more as the GST Council, has decided to raise cess on them from 15% now to up to 25%. After GST was introduced, the total tax incidence on motor vehicles comprising the GST rate and the cess came down compared to the total tax incidence in pre-GST regime.