Govt notifies infra cess of up to 2.5% on cars

Government today notified the imposition of infrastructure cess of up to 2.5 per cent on passenger vehicles, which was announced in Budget 2016-17 but was silent on 4 per cent levy on big diesel SUVs and cars.
Vehicles using petrol, LPG or CNG fuels with engine capacity not exceeding 1,200cc and length less than 4,000 mm will attract cess of 1 per cent, Central Board of Excise and Customs said in notification.
It further said a 2.5 per cent cess has been imposed on diesel vehicles with engine capacity not exceeding 1,500cc and length not exceeding 4,000 mm.
The notification was, however, silent on the 4 per cent infrastructure cess on "other higher engine capacity and SUVs and bigger sedans", announced by Finance Minister Arun Jaitley in the Budget.

"The pollution and traffic situation in Indian cities is a matter of concern. I propose to levy an infrastructure cess, of 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on other higher engine capacity vehicles and SUVs," the Finance Minister had said yesterday.
As per today's notification, ambulances, taxis, electric vehicles, including three-wheelers, hybrid vehicles, cars for physically handicapped persons, Hydrogen vehicles based on fuel cell technology are exempted from the levy.
In case of cars for physically handicapped persons, to avail of the exemption the buyer will have to give "an affidavit that he shall not dispose of the car for a period of five years after its purchase".