There are many luxury cars in the Indian market, which are sold for billions of rupees. But not everyone can buy such expensive cars. But have you ever wondered how much profit does car companies sell by selling these expensive cars? You may think that the company makes a profit of millions, but in reality the picture is the opposite.

Not a company on Fortuner, but the government earns more profit!

It may be surprising to read this, but Toyota Fortuner is a car that makes the government make more money than the company. According to a website, the X-showroom of the 4×2 at (petrol) variant of Toyota Fortuner is currently around Rs 36.05 lakh, while the top variant GR S 4×4 diesel AT is priced at Rs 62.34 lakh.

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Tax mathematics behind the price of Fortuneer

In 2022, YouTube and Chartered Accountant Sahil Jain said in his video that if the X-showroom cost of a Fortuner model was Rs 39.28 lakh, the original cost of the car is only Rs 26.27 lakh. The remaining amount increases with various tax.

The main in this tax is 28% GST and 22% cess (GST Compensation Cess). That is, this car is charged more than 50 percent of the total tax. For example, Rs 7.28 lakh GST and Rs 5.72 lakh cess on the above model and Rs 13 lakh are given to the central government only in tax format.

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What is the total income of the government?

In addition, additional charges are also added to the price of the glass, such as registration charges, logistic costs, fastags, and insurance. If there is a diesel variant, Green Tax also has to be paid. Considering all this, more than Rs 18 lakh a total of Rs 18 lakh goes into the government’s coffers.

More tax on luxury cars, but the company’s low profit

From all these processes, it is clear that the luxury cars make the government earns more. The company gets relatively low profit. Dealers, however, get more commissions on these cars. Therefore, it will not be forgotten that customers have to pay a large amount of money to the government only as taxes.