Reducing taxes on automobiles can boost sector, benefit economy: Vikram Kirloskar

A roadmap to reduce taxes on automobiles by half over a 10-year period to make the Indian auto industry more competitive globally and provide large scale employment to benefit the economy needs consideration, according to Toyota Kirloskar Motor Vice Chairman Vikram Kirloskar. Although at the moment India cannot afford to slash the tax rate on automobiles drastically, he said a plan to reduce cess on the industry can be looked at considering the sectors contribution to the overall GDP of the country. “The auto industry is highly taxed. If we look at a car by the time its produced and by the time its sold, in most cases it is 30 to 50 per cent more than the ex-factory prices (after adding) GST and all the other taxes, including road taxes,” he told

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