Budget 2022-23: The government has presented the fiscal budget for 2022-23, which includes several major adjustments. The government has suggested a 200 percent advance tax on the purchase of cars with engines larger than 1600cc in the 2019 budget.
The government has increased the advance tax on the aforementioned automobiles by 100 percent for non-filers solely. Although this tax will have no effect on the price of the car, it will help the government collect more taxes from people with a lot of money and bring them into the tax net.
The government would also charge buyers of high-end luxury electric cars (EVs) a two percent additional advance tax, according to the paper, though no limitations for that market have been given at this time.
The government wants to maintain the auto sector’s existing progress while also urging the industry to totally indigenize car and component production.