New Delhi: Toyota Kirloskar Motor (TKM) on Tuesday said it has hiked prices of select models, including Innova Crysta and premium SUV Fortuner, ranging between Rs13,000 and Rs1.6 lakh.
The decision to hike the prices has been prompted by the rise in cess from 2-7% across mid-size to large size cars and SUVs by the goods and services tax (GST) Council, TKM said in a statement.
The company has increased the price of Innova Crysta by around Rs78,000, Corolla Altis by Rs72,000, Etios Platinum by Rs13,000 and Fortuner by Rs1.6 lakh, it added.
“Following the ordinance on GST amendment, we have to revise the price of our products in line with the cess hike which may nearly reflect the prices in the pre-GST scenario," TKM director and senior vice-president marketing and sales N. Raja said.
Price of hybrids and small cars remains unaffected post the cess hike, he added. With the government notifying levy of increased cess, the effective GST rate on mid-size cars will be 45%, and on large cars it will be 48%.
The rate will be 50% on sports utility vehicles (SUVs), which include cars with length exceeding 4,000mm and having a ground clearance of 170mm and above. However, the cess on small petrol and diesel cars, hybrid cars and those carrying up to 13 passengers has not been raised. Under the GST regime, cars attract the highest tax slab of 28% and on top of that a cess is levied.