Tata Motors Ltd. will not be heavily impacted by a potential hike in compensation cess on luxury cars, Managing Director Guenter Butschek told BloombergQuint on Thursday.
The Union Cabinet last week cleared an ordinance to increase the maximum compensation cess for luxury cars and sports utility vehicles to 25 percent from 15 percent earlier as their tax burden had fallen under the Goods and Services Tax regime.
The cess hike can slightly impact Tata Hexa, however, it depends on the consumer behaviour, he said on the sidelines of the annual convention of Society of Indian Automobile Manufactures (SIAM) in New Delhi.
The company will decide on the way forward after the GST Council's meeting on hike in cess, Butschek added.
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