fluctuations on motor vehicles cess will adversely affect the stability and growth of the automotive industry in india the finance ministry today said the gst council has approved a proposal to hike cess on large cars and suvs to 25 per cent from 15 per cent now a decision on when to raise the actual cess leviable on the same will be taken by the gst council in due course folger said the move once again reiterated the need for a longterm roadmap for the luxury car industry which has been at the receiving end of arbitrary policies the constant shift in policy makes our longterm planning for the market highly risky and we think this would only have an adverse impact on the countrys financial ratings folger said he claimed that the government was causing more damage to the environment and slowing down overall growth pace of indias economic growth which it is striving to achieve by making better technology more expensive increase in cess would also reverse the positive momentum that the industry wanted to achieve with the introduction of the gst with this hike in cess we expect the volumes of the luxury industry to decelerate thus offsetting any growth in the potential revenue generation that could have come with the estimated volume growth folger added he further said one month was too short a period to consider an upward revision in rates and market performance should have been watched for at least six months before it was relooked the current proposal of increase in cess clubbed with the increased road tax rates will take the effective consumer price much above the pregst scenario level folger said rkl mkj