the luxury tax is on the amount which exceeds 3.5 million in the case of petrol non hybrid vehicle so say the cost of the car is 4.0 million.The tax free threshold is exceed by 5 laks so the luxury tax will be 5laks as the exceed amount is taxed at 100%.The 318is,C200s,Audi A3s,A5s,A4s are pretty much screwed as the CIF value is beyond 6million in most cases so that's an additional 2.5million++ ontop of the Engine capacity based taxes.