Pre-Diwali gift from Jaitley: Small cars will remain cheaper

At today's GST Council meeting in Hyderabad, Finance minister Arun Jaitley announced there would be no change in tax for small cars.

Was GST making you anxious about the small car of your dreams that you were planning to gift your family this Diwali? The GST Council has just given you quite a bit of relief. At today's GST Council meeting in Hyderabad, Finance minister Arun Jaitley announced there would be no change in tax for small cars.

"There will be no additional burden on small car buyers," the FM said after the 21st meeting of the GST Council.

Jaitley said there will be a status quo on tax rates on 1200cc petrol and 1500 cc diesel cars. The council decided to increase to raise total tax on midsize cars from 43% to 45%. Tax on large cars was raised to 48% from 43%.

On SUVs, total tax would now be 50% instead of 43%. There was no increase in total tax on 13-seater vehicles.

Here is how the tax burden stacks up for car buyers now:

► Small cars, 13-seater vehicles & hybrid cars : No change
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► Mid-size cars increased by 2%
► Large cars increased by 5%
► SUVs increased by 7%

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