Many Indians are shocked at how expensive luxury imported cars are in India compared with prices abroad, especially in Dubai, UAE. A recent LinkedIn post by entrepreneur Ashish Gupta sparked debate by highlighting the sharp difference in how much freelancers or high-earning professionals need to earn in India to afford a luxury imported car compared with Dubai.Let’s break down the facts, timeline and the current policy environment.What Is the Real Cost of Imported Luxury Cars in India?Imported luxury cars attract very high taxes and duties in India, much higher than in most other countries.A typical luxury vehicle imported into India goes through several layers of charges:Import duty (customs duty) is often 60%-100% of the car’s factory price.GST (Goods and Services Tax) of 28%.Compensation cess up to 15%-22% ,depending on engine size and vehicle type.State road tax and registration fees vary widely by state.These taxes can more than double or even triple the price of a car when it reaches the buyer. For example, if a car’s factory price (in Germany, say) is ₹70 lakh, its on-road price in India with all duties and taxes included can be around ₹1.7-1.8 crore or higher.That means more than half of what you pay… Read MoreStartupTalky- Business News, Insights and Stories
