MADRID, 15 Sep. (EUROPA PRESS) –
The automobile firm Toyota will stop its expansion in the Indian market due to the high taxes that the Government of India imposes on vehicles, despite the fact that the country is currently trying to attract multinationals to improve the economic situation it is going through due to the pandemic.
According to the vice president of Toyota in India, Shekar Viswanathan, the Indian Executive maintains taxes “so high” that companies find it “difficult” to increase their volume. In addition, this tax regime makes many citizens unable to access a vehicle, which means, according to Viswanathan, that factories cannot create jobs.
“The message we are receiving, after having landed in India and invested money, is that they do not want us,” Viswanathan said in an interview with Bloomberg, adding that if the Government does not establish any tax reform, Toyota It will not leave the country but it will not increase its volumes either.
Still, the automobile multinational has indicated that it has “confidence” that the Government will do everything possible to support the industry, which has already requested a “viable tax structure.”
Currently, the country imposes a tax of up to 28% on vehicles, with the exception of ‘zero emissions’ models. In addition, Indian law also requires other levies ranging from 1% to 22% depending on the type of vehicle, its size and its engine.