Taxes on cars to increase upto 57% in India?

Sorry about the click bait title but this might turn into reality very soon if there’s no opposition against creating of new 35% tax bracket. First off, some stats & historical precedence: Around 15 percent of the total GST collection in 2022 is attributed to the Indian auto inc, which amounts to approximately Rs 1.5 lakh crore. The compensation cess was introduced to help states adjust to revenue loss after GST implementation. Originally, the GST compensation cess rate in India for cars was planned to be in place for 5 years starting from the introduction of GST on July 1, 2017, and was supposed to end on July 1, 2022. The compensation cess, whose levy was slated to end on June 30, 2022, was extended for another four years until March 31, 2026. It was primarily driven by the need to repay loans taken by the central government to support states during the revenue shortfalls caused by the COVID-19 pandemic. The continuation of the GST compensation cess affects various sectors, especially luxury goods and automobiles, which are subject to higher tax rates under this framework. It is set to expire in March 2026. There's a surplus of around Rs 70,000 crore from cess collections, which could benefit the central government. States are proposing to merge the cess with existing GST taxes instead of letting it expire. This would allow for separate tax rates on "sin" and luxury goods, potentially generating higher revenue. Discussions are already underway regarding introducing a new higher tax slab of 35% for sin goods. However, experts warn that implementing this higher rate could set a precedent, leading to similar tax increases on other products with comparable health or environmental impacts. When the 28% rate was first introduced, it was intended for "sin goods," such as cigarettes, pan masala, and tobacco products. Over time, however, this category has expanded to include automobiles, dishwashers, air conditioners, and even cement. This proposal reflects the government's strategy to maintain revenue levels even after the compensation cess expires. Now, I’m just speculating here but if they increase the GST rate to 35% for sin goods, I’m sure cars will be included as the government considers owning a car by honest means, a sin. So, as per Murphy’s whatever can go wrong, will go wrong in GST council meeting and if the government doesn’t remove compensation cess in 2026, tax rates will be 35%+ upto 22% (for suv’s) next year and that’s excluding registration & road tax paid to state governments! If there is anyone reading this, who has some political influence or lobbying power for auto-industry, please urge your higher ups to fiercely oppose this regressive policy.