Japanese auto giant Toyota Motor may not expand further in India due to the country’s high tax regime, Bloomberg reported on Tuesday.
This is a blow for Prime Minister Narendra Modi, who’s trying to lure global companies to offset the deep economic malaise caused by the coronavirus pandemic. A Bloomberg report, last week, said India is planning to offer incentives worth $23 billion to attract firms to set up manufacturing.
In India, motor vehicles including cars, two-wheelers and sports utility vehicles attract taxes as high as 28%. On top of that there can be additional levies, ranging from 1% to as much as 22%, based on a car’s type, length or engine size.