Tax, by definition, is a compulsory contribution. It is one of the major source of revenue for Government. At the same time Government can use tax system to alter the market forces of demand and supply. Also, it can be used as a tool for redistribution of wealth, for fostering economic equality, thus the idea of higher taxes on luxury goods and services. One of the major passenger car taxation reform happened, was in the year 2006.  This had led to birth of whole new segment