Overview
Finance Act 2023 affects car prices. Advance Tax has been increased for cars with engine capacity 2001cc or above and Hyundai Sonata 2.5L price is revised under this change. Hyundai notifies the concerns of amendments in Finance Act 2023 which affect the prices of cars. The tax has been changed for filers and non-filers. Non-filers already pay huge amounts but this time they will have a huge burden.
On the other side, Kia and Peugeot also increased the prices of their vehicles. But they didn’t mention the reason but is most probably the cause of the devaluation of the rupee value and issues of LCs approval.
Hyundai Sonata 2.5L New Price
Hyundai Sonata 2.5L price increased under the tax amendment of 2001cc to 2500cc engine capacity vehicle which is 6% on the value of vehicle. Here are the prices according to the change in tax.
- Sonata 2.5L’s previous Advance Tax for the filer was Rs. 300,000 and the price of the vehicles is Rs. 11,280,000. The new tax as per 6% for filers is Rs. 676,800. It means the tax increased by Rs. 376,800.
- For non-filers, the previous tax rate was Rs. 900,000. As per the new tax revised for non-filer, it is increased by 18% and the tax value reached Rs. 2,030,400. Now non-filer will pay Rs. 1,130,400 extra.
New Advance Tax
The government has revised fix Advance Tax and announced tax revised as per vehicle engine capacity. The purpose of making amendments to tax is to increase government income which seems necessary to stabilize economic conditions meanwhile, it makes huge changes in car prices for filers and non-filer are burdened with huge amounts.
- As per the new Advance Tax vehicles with engine capacity of 2001cc to 2500cc will pay a fixed Advance Tax of 6% on the value of the vehicle.
- Similarly, vehicles with engine capacity of 2501cc to 3000cc pay a fixed tax of 8% on the value of the vehicle.
- Vehicles having engine capacity above 3000cc will pay to fix 10% tax on the value of the vehicle.
Conclusion
The government has increased taxes for non-filer hugely which is good to make a proper system. As per the source, the government has increased the tax to full fill International Monetary Fund’s (IMF) demands and requirements. It might also increase government income and hope that government conditions will be stable. The unstable economic condition also leave bad impacts on the automotive industry.
