Jeep Compass is likely to witness a substantial hike in price by up to Rs 1.5 lakh if the GST council decides to increase the additional tax by 10%
Jeep’s most affordable model, ‘Compass’ is likely to witness a substantial hike in price by up to Rs 1.5 lakh if the GST council decides to increase the additional tax by 10 per cent. While the automotive fraternity was rejoicing drop in prices across segments barring hybrids, the sudden jolt could mean a bump in the growth of the industry. One of the models which will bear the brunt of change in tax structure is the new Compass, launched in India on July 31, 2017 at a sticker price of Rs 14.95 lakh (ex-showroom, Delhi). Also Read – Jeep Compass Price & Other Details
Within a week after Compass’s launch, the Finance Ministry tweeted deeming a possible rise in additional tax for luxury vehicles and SUVs. The additional tax on these vehicles is currently 15% which could be raised to 25%, taking the total tax to 53% from the current 43% (28% +15% additional tax). Compared to the pre-GST tax, there will still be a reduction by 1.58% for SUVs. Also Read – Top 5 Alternatives For Jeep Compass
With a straight 10% hike in prices, Jeep Compass will start at Rs 16.44 lakh against the current Rs 14.95 lakh. While the top-spec variant will then cost Rs 22.71 lakh compared to the current Rs 20.65 lakh (all prices ex-showroom, Delhi).
The proposal for the new tax structure will be reviewed at the upcoming GST council meetings, before a final decision is made at the end of this month. As of now, there is yet no clarity on the timeline for the implementation of the new tax policy, though reports suggest it could come into force as early as next month.
With over 5000 pre-orders before the launch, Jeep is currently commanding a waiting period of few months. We will have to wait and see if the revised pricing will have an impact on the Compass’ sales.