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From April'2017, car, motorcycle and health insurance is going to get costlier, as the insurance regulator IRDAI is going to give "go-ahead" to insurers for revision in commission for agents. The IRDAI (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016 will hike premium rates by as much as 40% for 2016-17 which will come into effect from 1st April'2017. For cars below 1,000cc the premium has raised by 40% to Rs 2,055, while for compact or B segment cars (1,000-1,500cc) the increase is 40% to Rs 2,237 & for sedans, the regulator has increased it by 25%.

It's no new news that India has proved to be a robust market for British luxury cars. Lately the industry has witnessed the further hike in exports or luxury cars from UK to India. But now the cess on sports utility vehicles and luxury cars is likely to be increased to 25 % from the current 15 %, making these vehicles more expensive. The Goods and Services Tax (GST) Council has taken a decision to this effect but has not discussed this yet. The increase in the cess will take the effective tax rate on these cars to 53 %.

Today is a historic day for our country. GST has finally been rolled out. Our dream of one nation one tax has come true. All the multiple state and central taxes go out and are replaced by with a single levy. Cars falling under luxury bracket will attract 28% flat GST. Over and above, an extra cess of 1, 3 or 15 per cent is proposed depending on the classification of cars. This has brought the earlier tax hit down making these cars marginally cheaper. Two-wheeler prices are also expected to come down owing to the lowering in the total tax imposed on these vehicles.