Mercedes-Benz seeks reduction in cess to boost luxury car sales in India

- Reduced cess to help luxury car segment 

- Mercedes-Benz products attract GST of 28 per cent with additional cess ranging from 20 to 22 per cent 

German luxury car manufacturer, Mercedes-Benz has sought a reduction in cess on luxury vehicles in India to grow the premium car segment in the country. The luxury segment has been affected with poor sales and the luxury car manufacturer believes that the reduction in cess will help the luxury car segment attain the desired sales in terms of volumes. 

Martin Schwenk, CEO and Managing Director, Mercedes-Benz India said to PTI, “We would not expect short-term policy changes in taxation which has been a long standing demand of the auto sector. However, we would strongly recommend to reduce the additional 20-22 per cent cess which is levied on our products, on top of 28 per cent GST.” 

At present, automobiles attract GST of 28 per cent with additional cess ranging from 1 per cent to 22 per cent. Speaking on the occasion, Martin further added, “From a policy perspective in the mid-long term, we would ask for further harmonisation of vehicle regulations and working on international trade agreements (with EU) to promote export and import potential of vehicles and their parts.”

Overall, Mercedes Benz is expecting better sales in 2021 as compared to the current year. The luxury car manufacturer will back it up with new products and innovations. Mercedes-Benz will also introduce various models next year, starting with the new A-Class Limousine and the new GLA.