Advance Tax – Hyundai Sonata 2.5L Price Revised

Hyundai Nishat Motor has revised the tax rate on the price of the?Hyundai Sonata 2.5L ?due to a change in Advance Income Tax. In a notification, the company said concerning the recent Finance Act 2023, the following are the amendments made in tax policies and their implications on HNMPL products.?

“The advance income tax for vehicles with engine capacity of 2001cc and above has been changed from a fixed amount to a percentage-based tax value on the vehicle,” the company mentioned. The tax amount shall now be variable and calculated on the ex-factory price of the vehicle.?

The new prices will be effective from?July 1, 2023.?

New Hyundai Sonata 2.5L Price?

According to the company:?

• The price of Sonata 2.5L is Rs. 11,280,000, with a previous advance tax of Rs. 300,000. The revised tax rate for Filer is 6% with a tax value of Rs. 676,800, meaning it is increased by Rs. 376,800.
• The previous tax rate for Non-Filer was Rs. 900,000, but it is revised to 18% taking the value to Rs. 2,030,400. It means the Non-Filer has to pay Rs. 1,130,400 extra if they want to buy Sonata 2.5L.

Revised Advance Tax

Under the Finance Act 2023, these are the revised rates of?Advance Income Tax :?

• A 6% tax will be imposed on the value of vehicles with engine capacities from 2001cc to 2500cc.
• Vehicles with engine capacities from 2501cc to 3000cc will face an 8% tax based on their value.
• Cars powered with engines exceeding 3000cc will be subject to a 10% tax based on their value.

The government has reportedly revised these tax rates to increase the tax net under the International Monetary Fund’s (IMF) demand. The step is good about increasing the rate for Non-Filers as such steps will help the government bring more citizens into the tax net, increasing revenue.?

What is your take on the new advance tax and its impact on Sonata 2.5L price? Please tell us in the comments section.?