New Delhi – Manufacturers of luxury cars has expressed their disappointment over the price hike on the Cess. The approval of cess hike has not come all of a sudden. This has been in the discussion and people were talking about a possible price hike. The percentage of tax has gone up to 25% from the 15%. Some hybrid cars and mid size cars depending on the specification come under the similar tax system.

When the GST rolled out on 1st July, the cars became cheap. However, with the recent reformation, the cars that breathed a sigh of relief would attract GST of 28%. Additionally, a cess of 1 to 1.5% would be applicable on top of everything.

Right after the implementation of GST, the car companies from the overseas market were trying to make their way in India. However, with this revised tax system they are unlikely to join the market.

Roland Folger, MD, and CEO, Mercedes-Benz Indian has openly expressed his disappointment. He said that after this decision, his company would review their decision of expanding the company in the Indian market. Mercedes-Benz has planned to sell top quality designs in India. However, the plan might be on hold after this sudden reformation of GST taxation.

He added his feeling deprivation. Mercedes-Benz has been a pioneer to the Make in India campaign. The decision of tax hike would also force them to reverse the momentum which they planned to build after the initial implementation of GST.

Toyota Kirloskar Motor Vice Chairman shares the similar view. He expresses his opinion by saying that after this decision it is not easy to spur any auto movement in this country.

Audi India Head Rahil Ansari said that Audi would be forced to reconsider their decision of expansion in India. The decision which Indian government has taken is not supporting the liberal spirit.

BMW though welcomes the movement, Vikram Pawah, the president of the company says that it is sure to affect the market negatively.