Mercedes calls for lower taxes on luxury cars in India

NEW DELHI: German carmaker Mercedes-Benz has pitched for lower taxes on luxury cars in India, saying the move will help in job creation as well as increase tax collection from the segment. The company reasoned that "better treatment" in terms of taxation could lead to growth of luxury car segment in the country. Under the GST regime, large cars with engine capacity greater than 1,500 cc and SUVs with length more than 4 metres and engine greater than 1,500 cc attract cess of 15 per cent in addition to the top tax rate of 28 per cent. "We have seen in India that if in one hand something is given then on the other hand something is taken back," Mercedes-Benz India Managing Director and CEO Roland Folger told. This is the basic reason why the luxury segment has not been performing better in the country, he added.