The 25 % tax of the CIF value mentioned in the circular is only the percentages of duty and vat. Apart from that there's a cluase saying other taxes will be applicable, meaning endless taxes like port levy/ social reponsibilty tax will be added on top of this.
For the diesel 2.8 ltr category the addition of the total taxes will be around 112.5% of the CIF value. Also keep in mind the normal duty for a diesel vehicle is around 300%.
I would say the government has given the permit just for the sake of giving. They haven't paid attention to whether average person can afford it or not.