Chinmayi Questions SUV Prices and Taxation. Popular Indian singer and activist, Chinmayi, recently took to social media to express her astonishment at the exorbitant taxes imposed on SUVs. Sharing a news article highlighting the significant taxes on sport utility vehicles, she commented, “Tax kattiye saavalam. Sambaadhikkaromo illaiyo” (Have they cut taxes? Seems unlikely). This post sparked a discussion on the burdensome taxation system and its impact on the prices of vehicles in India. Let’s delve deeper into the issue and understand the implications of these taxes.

In a recent social media post, Chinmayi shared an article written by Roshun Povaiah, Editor at Financial Express Digital. The article shed light on the hefty taxes imposed on SUVs, MUVs, and XUVs. According to the report, any UV (Utility Vehicle) now attracts a 22% compensation cess in addition to the 28% Goods and Services Tax (GST). The definition of a UV, in this context, includes vehicles that are over 4 meters in length, have an engine capacity of more than 1,500 cc, and possess more than 170 mm of ground clearance (un-laden). Interestingly, although this taxation rule does not apply to sedans, there are a few sedans available in the market that meet these criteria as well.

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Chinmayi’s reaction to this news encapsulates the frustration and astonishment many consumers feel when faced with the exorbitant prices of SUVs. The term “Tax kattiye saavalam” translates to “Have they cut taxes?” and reflects her skepticism towards any potential reductions in the taxation burden. Her accompanying remark, “Sambaadhikkaromo illaiyo,” which means “Seems unlikely,” implies her doubt regarding the possibility of a more lenient taxation system.

The financial burden imposed by taxes on SUVs is a matter of concern for many prospective buyers. As the article highlights, over 50% of the price of an SUV or MUV comprises various taxes. Such a substantial tax burden not only affects the purchasing power of consumers but also has broader implications for the automotive industry.

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The high taxes on SUVs have raised questions about the rationale behind this taxation policy. While the intent behind levying higher taxes on larger vehicles may be to promote fuel efficiency and reduce pollution, it also inadvertently contributes to inflated prices, limiting accessibility for a significant portion of the population. The impact of these taxes extends beyond individual consumers, affecting the automobile sector’s overall growth and sales.

Chinmayi’s social media post has ignited a broader conversation about the need for tax reforms in the automobile industry. Many users echoed her sentiments, expressing their discontent with the excessive taxation on SUVs and calling for a more balanced and rational approach to taxes. The hope is that these discussions will spur policymakers to reevaluate the tax structure and consider reforms that promote fairness and affordability without compromising the country’s revenue generation.

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The social media post by Chinmayi has initiated discussions about the need for a more balanced approach to taxation, considering the potential repercussions on consumer behavior and industry dynamics. Critics argue that the current taxation system disproportionately burdens certain segments of the market, hindering economic growth and discouraging innovation. Some proponents suggest exploring alternative taxation methods that encourage sustainability while promoting affordability and accessibility.

Here her tweet below:

Tax kattiye saavalam.
Sambaadhikkaromo illaiyo. https://t.co/66AtJrYhKd

— Chinmayi Sripaada (@Chinmayi) July 12, 2023

Chinmayi’s social media post highlighting the excessive taxes on SUVs in India has shed light on an issue that affects both consumers and the automotive industry. The disproportionate taxation burden placed on larger vehicles raises concerns about affordability and accessibility. As discussions continue, it is crucial for policymakers to consider the broader impact of these taxes and strive for a more balanced and sustainable taxation policy that promotes both economic growth and environmental consciousness.