Mercedes-Benz on Monday said India`s proposal to increases taxes on luxury cars and sport-utility vehicles (SUVs) could impact the carmaker`s expansion plans in the country and hurt sales.
Mercedes-Benz, owned by Daimler AG, is one of the biggest luxury car sellers in India, and a senior company executive said that the constant shift in policy in the country was making long-term planning for India "highly risky".
"This decision once again reiterates the need for a long-term roadmap for the luxury car industry, which has been at the receiving end of arbitrary policies," Roland Folger, managing director at Mercedes-Benz India said in a statement.
"We believe this will be a strong deterrent to the growth of luxury cars," Folger said, adding the government should have waited for at least six months before revisiting the rates.
On July 1, India rolled out the goods and services tax (GST)replacing a multitude of provincial and national levies in the biggest tax reform in 70 years.
Under GST, most vehicles are taxed at 18 percent with an additional levy of 15 percent on some types of cars.
At a meeting held on Aug. 5 a council set up to implement the new tax regime decided to raise the additional levy to 25 percent. The council will decide later when the higher rate will be applicable.
Other luxury carmakers in India include BMW, Audi, Volvo and Jaguar Land Rover, owned by Tata Motors. Automakers such as Toyota Motor, Mahindra & Mahindra and Maruti Suzuki sell SUVs in the country.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
07:09 PM IST