Tax on automobiles in India is higher compared to many other countries and there is a need to reduce it in order to create demand and develop the industry, Maruti Suzuki India Managing Director and Chief Executive Officer Kenichi Ayukawa said Wednesday.
Currently, automobiles attract peak GST rate of 28 per cent with additional cess ranging from 1 per cent to 15 per cent depending on length, engine size and type.
"Compared to other countries, tax is a bit high (here in India). In order to develop the industry, we have to ask the government to reduce taxes, which we understand is not easy," Ayukawa told PTI.
He further said, "We have to collaborate with the government to try to find some solution. In order to encourage demand, the best way is to reduce taxes."
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