TIL Desk/Business/New Delhi/ The move to hike ceiling of cess on large cars and SUVs to 25 per cent under the new GST regime would impact growth of advanced global models in India and could come in the way of the country becoming global hub for automobile production, according to Japanese auto major Honda.
The company, which operates in the country through a wholly-owned arm Honda Cars India Ltd (HCIL), said the move is a “big disappointment” and it will “isolate India as a market with too much bias towards small cars”.
HCIL President and CEO Yoichiro Ueno said the company had ‘sincerely welcomed’ the tax reform achieved through GST implementation from July 1 with a confidence that it would be a big boost for the automobile industry in India.
“However, the latest government move to increase the ceiling on the additional cess on automobiles from 15 per cent to 25 per cent on larger cars and SUVs, is a big disappointment,” he said in a statement.
Ueno further said: “Such a move will impact the growth of advanced global models in India and will isolate India as a market with too much bias towards small cars.”
