First it was cigarettes that got stubbed; now it’s the turn of SUVs to face an endurance test. By becoming a tinkerer’s playpen, the goods and services tax (GST) is emerging as a fresh source of uncertainty for business.
The GST Council on Monday recommended an additional levy of 10 percentage points on luxury cars and sports utility vehicles, taking the total to 53 per cent. The change comes barely five weeks after the value-added tax replaced a plethora of federal and state levies. Last month, a similar bump in cigarette taxes spooked investors.