Mercedes –Benz, a deluxe German based car manufacturer has emphasized the Indian state officials to mitigate the level of taxes imposed in car importation.
This petition is filled as a result of heavy investments which the company is anticipating to perform in India, said by higher executives.
According to Eberhard Kern, Managing director and chairperson of Mercedes-Benz Indian division, “the company has enough resources to claim as a prestigious brand in luxurious car manufacturing industry. In the case of disseminating our operations in India, the supply and demand of locally assembled will be increased constantly in domestic market. The facts revealed that over 70% locally assembled cars out of 10,201 cars were sold during 2014, showing a drastic growth from the last year. Therefore, making more investment and unveil latest cars will further boom the sale.”
He further added that the governmental authorities should review the income tax structure and rationalize the burden of taxes specifically in those states where the adoption of pan-India businesses are difficult. Presently, the tax regime which is applying on locally produced cars comes between 58 to 75 percent, while 170 percent of tax burden is applied on imported cars. The company also argued that automobile taxes in India are among the maximum across the globe.
The annual sales of Mercedes are popping up over time and by having 15 new awaiting products, the sales will boom even more pace. Therefore, the dwindling in the taxes will ultimately assist the company to achieve their targets on a greater extent. Moreover, the company is also expecting from other companies to come up and join the cause for mutual benefits. This will surely facilitate the consumers in the form of cheap car prices but the administration should urge on to the manufactures for making safer cars according to international standards such as airbags facility and ABS even in low-ended cars.
