Archive · 22 Jun 2025
CA Highlights ₹6 Lakh in Taxes on New Car, Raising Concerns
Imagine wanting to buy a car, but almost half the price is for taxes!
A CA showed how this happens in India.
A car that costs ₹12.9 lakh has about ₹6 lakh added just for taxes like GST and other charges.
This makes it harder for middle-class people to buy cars, as a lot of their money goes to the government.
The CA's post is like saying, 'Hey, is this fair?'
and people are now talking about how expensive it is to own a car.
A CA highlighted nearly ₹6 lakh in taxes on a ₹12.9 lakh car purchase.
Taxes comprise approximately 46% of the vehicle's final price.
The breakdown includes a 28% GST, a 17% Compensation Cess, and a 1% TCS.
The post questions the impact of high taxes on middle-class car ownership.
The post sparked discussions on the overall cost of car ownership in India.
- Who
- CA Arvind C Thomas
- What
- A CA exposed the high taxes on car purchases in India.
- When
- The details were shared in a recent LinkedIn post.
- Where
- India
- Why
- To highlight the financial burden of car ownership on the middle class.
Buyer's Perspective
Government Perspective
Affordability vs. Government Revenue
Buyer's Perspective
High taxes make car ownership unaffordable for the middle class.
Government Perspective
Government benefits from tax revenue to fund public services.
- Base Cost
- ₹12.91 lakh
- Taxable Amount
- ₹12.80 lakh
- GST
- 28%
- Compensation Cess
- 17%
- TCS
- 1%
- Total Taxes
- Approximately ₹6 lakh