The Union Budget 2016 has been announced by the Finance Minister Arun Jaitley. Among the new amendments, the ministry has proposed a oneper cent cess on all luxury vehiclesthat cost over Rs 10 lakh. This decision has been taken to curb rising vehicular pollution.
While sub-4mSUVslike the Mahindra TUV300 and the sub-Rs-10-lakh trims of theFord EcoSport will mostly remain unaffected, the prices of other popular offerings like the Hyundai Creta, Renault Duster, Mahindra Scorpio, Mahindra XUV500, Maruti S-Cross and Tata Safari Storme will be increased. The new update on the budgetmightalso affect the upcoming compact SUVs like the Honda BR-V and the Tata Nexon. The infrastructure cess on small vehicles will increase by one per cent while those of diesel cars by 2.5 per cent. On top of this, petrol, LPG/CNG vehicles will have to pay one per cent pollution cess while 'small' diesel cars 2.5 per cent and 'bigger' diesels four per cent.
The premium SUVs which are priced above Rs 20 lakh will also undergoa raise in ex-showroom prices. These include the Ford Endeavour, Chevrolet Captiva, Toyota Fortuner, Honda CR-V, Mitsubishi Pajero Sport, Hyundai Santa Fe, Mercedes-Benz GLA, BMW X1 and the Audi Q3.