The festive season, which starts at the end of next month, is going to have a big impact on the sales, especially if you are planning to buy a car above 10 lakh, then you have to increase your budget significantly for this. 

On Wednesday, the Central Government has increased cess on luxury trains. With this, now you have to pay 53 percent tax in addition to GST and Cess. 

At first, GST was 28 percent and Cess was 15 percent, which was 43 percent in total. Now it will increase to 53 percent. 

Finance Minister Arun Jaitley had said on Wednesday that the GST Council will decide the segment of the cess and the trains affected by it. However, apart from high-end trains, there will also be the impact on such trains which were earlier in the reach of the common man. 

According to auto industry sources, the increase in cess will affect sales of trains with prices above 10 lakh. The price of trains like Honda City, Creta and Ciaj will also increase significantly. However, buying a car like BMW, Audi, Land Rover, Mercedes Benz will be a lot of trouble for the people. 

If you are going to buy a base price of 10 lakhs, you just have to pay 43 percent as tax and cess. Accordingly, you are getting Rs 14.30 lakh. 

The overall tax incidence on locally-assembled luxury cars had come down from around 55 percent earlier to 43 percent in the GST regime. The additional cess on luxury cars and SUVs will now bring the total tax figure on these cars at 53%.

Now after taking 53 percent tax and cess, this will cost Rs 15.30 lakhs. As you increase the base price, the tax will increase in the price of the car. After the tax of a base price of 20 lakh, you will get 30 lakh 30 thousand rupees. 

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