Earlier this week, Mercedes-Benz Australia announced a price cut on selected models of its C-Class variants. The move comes as a response to Australian authorities’ placement of the C200 and C250 sedans in a category where they will not be penalized with a Luxury Car Tax. Because these cars have slipped under the guidelines for the imposition of the LCT, Mercedes-Benz has been able to provide discounts of up to $2300 per car.

Mercedes credits its stop-start technology for the fuel sipping C-Class models that have escaped the Luxury Car Tax. These fuel-sipping Mercedes C-Class are now rated at 6.9 l/100 km. So, aside from being cheaper than its competitors, the C200 and C250 are also more frugal to operate. A worrying development for competitors BMW and Audi then. But despite this welcome development, Mercedes issued a stongly-worded statement regarding the LCT. “We do not believe or accept that any vehicle purchaser should pay LCT as it is a tax on technology and safety,” the statement said. “No other so called luxury purchase is subject to such a regressive, discriminatory and inequitable tax. No one likes to pay LCT and in this case we have passed on the fuel savings so that LCT now means Less Car Tax.”