Buying a car is a pricy affair, especially when it comes to full-sized SUVs that can even touch crores of Rupees. And while everything you buy from the market is subject to several kinds of taxes, the reality is far more shocking. And this has been brought to light via a recent video that decoded taxes levied on the Toyota Fortuner.
Toyota Fortuner Taxes Decoded
As explained via a video uploaded by the popular educational channel, Sahil Jain Classes; the shocking reality of Indian taxation, especially in the automotive industry has come to light. As per the video, with the ex-showroom price of the Fortuner set at Rs. 39.28 Lakhs, the real price of the vehicle comes around Rs. 26.27 Lakhs, while the rest of the money is comprised of the GST Compensation Cess (22%) and the GST (28%).
Video By Sahil Jain Classes
That’s not all. There are several other charges that are put up on the overall cost of the Fortuner. These included the usual registration, Green Cess (For Diesel), Insurance, TCS, extended warranty and logistics charges.
While the government gets its hands on charges such as the registration, Green Cess etc. The aggregate amount adding all the taxes and fee that goes to the Government adds up to little more than Rs 18 lakh. So amongst the three entities in question; the Government, Dealer and OEM, Government takes away the largest chunk.
Coming to the dealership, the earning depends on the commission amount set that is based on the ex-showroom price of the car that comprises the actual price and the GST component. Additionally, dealers also earn on insurance, accessories and financing. Having regard to all these, the average earning of the dealer after selling the Fortuner comes around Rs. 1 lakh.
Last and in this case the least, the OEM takes away only a minute chunk of the actual vehicle cost which is close to Rs 40,000 in the case of the Fortuner.
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