Luxury cars to become costlier

Union Finance Minister Arun Jaitley here on Monday announced that an additional 1 percent tax will be imposed on cars valued at above Rs.10 lakh.

"I also propose to collect tax at source at the rate of 1 percent on purchase of luxury cars exceeding value of Rs.10 lakh," Jaitley said while presenting the national budget for 2016-17 in the Lok Sabha.

"I propose to levy an infrastructure cess, of 1 percent on small petrol, LPG, CNG cars, 2.5 percent on diesel cars of certain capacity and 4 percent on other higher engine capacity vehicles and SUVs," Jaitle said while expressing the government's concern over pollution and traffic situation in cities.