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Toyota seeks to cut auto tax to boost auto industry


Japanese auto giant Toyota Motor has once again raised the issue of high taxes on new cars in India. The automaker seeks to lower taxes to put the auto industry on a growth path and make it more globally competitive. Vikram Kirloskar, Vice President of Toyota Kirloskar Motor, said tax reduction not only helps to reduce car prices in India but also helps the auto industry contribute more to GDP besides creating more jobs. He proposed a plan to halve auto taxes over a 10-year period.

Via:
Car table HT

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Update on:
November 28, 2022, 10:34 am

Vikram Kirloskar, Vice President of Toyota Kirloskar Motor, said that the automotive sector in India is currently highly taxed.
Vikram Kirloskar, Vice President of Toyota Kirloskar Motor, said that the automotive sector in India is currently highly taxed.

Kirloskar concedes that a drastic reduction in taxes on cars is not a viable option at the moment. However, in the long run, the Center may have to consider reducing the tax to around 50%. “Can you cut it in half?…can make a long-term plan on how to reduce taxes in the auto industry to make it grow quite big, which will make it even bigger more competitive for domestic and export and provide jobs on a large scale and benefit the economy?” Kirloskar was quoted by PTI news agency in an interview.

Currently, new cars in India attract 28% GST in addition to an additional reduction of up to 22% in ex-factory price based on vehicle type. Fully built units (CBUs) are more expensive as they are subject to customs duties ranging from 60% to 100% based on engine value and cost, insurance and freight (CIF). Toyota thinks the current tax structure is too high. “The auto industry is highly taxed. If we look at an automobile at the time it is manufactured and sold, in most cases it is 30 to 50 percent higher than the export price. factory (after adding) GST and all other taxes, including road tax,” Kirloskar said.

The automotive sector currently contributes about 8% to India’s GDP. Kirloskar said the tax cuts would help the auto industry grow and could contribute more to the economy. “I have never asked for a reduction in GST. I am only saying because is it possible to plan a long-term plan and how to reduce taxes in the auto industry to make the industry grow quite large, which will make the industry automobiles further developed”. compete domestically and for export, providing large-scale jobs and benefiting the economy?” he said.

Toyota is currently selling SUVs like Fortuner and urban cruisers HyRyder next to MPVs like Innova Crysta and fire and the Glanza hatchback in India. It also sells Camry hybrid sedans and Hilux pickups. Its best-selling models are the Innova Crysta, which will soon be paired with the Innova HyCross hybrid avatar next month. Fortuner leads the large SUV segment priced from $35.09 lakh (old gallery).

First published date: November 28, 2022, 10:34 am IST

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