October 23, 2017

Steep GST, cess drive Toyota Camry hybrid out of production

The Camry production line at Toyota Kirloskar Motor’s sprawling manufacturing site on Bengaluru’s outskirts has ground to a halt because the goods and services tax (GST) and the attendant cess has made it too costly, the company said.

The assembly line was producing only the hybrid variant due to overwhelming demand for that version of the car. But sales dropped precipitously after the price surged on imposition of 28% GST plus the 15% cess for luxury cars.

This meant the ex-showroom price of the car in Delhi, which accounted for half its sales, rose to about Rs 38 lakh from Rs 32 lakh.

Read more at: http://economictimes.indiatimes.com/articleshow/61177278.cms

Request to GST council: please keep average GST rate around 10% and max GST at 18%... this was the original intent under UPA.

Also read: India’s 28% Tax Slab is the Highest GST Rate in the World.

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