Japanese carmaker Toyota has announced an increase in prices of a majority of the models in its line-up due to the GST Council's recent decision to hike the cess on midsize, large cars and SUVs.
The popular Innova MPV, the Fortuner SUV and the Corolla and Etios sedans see an increase in their price tags in the range of 2 to 7 percent.
This translates into a price increase of Rs 78,000 for the Innova Crysta, Rs 1.6 lakh for the Fortuner, Rs 72,000 for the Corolla Altis and up to Rs 13,000 for the Platinum Etios.
However, Toyota has also announced that the prices for its Etios Liva and its hybrid Camry will remain unchanged.
Under the new GST code, the additional cess on mid-size vehicles has been raised by 2 percent to 17 percent, on large vehicles by 5 percent to 20 percent and on SUVs by 7 percent to 22 percent. Under the original rate, large vehicles and SUVs attracted a cess of 15 percent over the flat rate of 28 percent.
As a result of the hike in cess, the total tax incidence on mid-size cars, large vehicles and SUVs now stands at 45 percent, 48 percent and 50 percent, respectively. Small cars and hybrids, however, were spared from the cess hike.
Most carmakers are likely to also pass on the impact of hike in cess to car buyers in the coming days. The decision by the GST Council could hurt passenger vehicle demand ahead of the festive season, which usually witnesses a ramp up in offtake.
Viraaj Bhatnagar
Dipan Sur
Dhruv Dhaka
Saptarshi Mondal
