Indian Car Makers Propose Tax Cut on Imports in Trade Deal with Britain
According to details provided by Reuters, Indian car makers have proposed lowering the tax rate on imported cars to 30% as part of a trade agreement with Britain. This is an unprecedented move and could open up access to one of the world’s most tightly guarded auto markets.
According to sources with first-hand knowledge of the situation, this is the first time Indian car makers have supported such tax cuts, capitulating to pressure from a government that wants them to give up their protectionist posture and decrease entry barriers.
The fourth-largest car market in the world has import taxes ranging from 60% to 100%, which are among the highest in the world and are criticized by businesses like Tesla Inc., which shelved entry ambitions due to the high tariffs.
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