Indian carmakers propose tax cut on imports in Britain trade deal

It is the first time that car makers have backed such cuts, caving to pressure from a government that wants them to give up their protectionist position and lower entry barriers, said sources

Carmakers in India have proposed cutting to 30 per cent the tax rate on imported cars as part of a trade deal with Britain, sources told Reuters, an unprecedented move that could ease access to one of the world’s most protected automobile markets.

It is the first time that car makers have backed such cuts, caving to pressure from a government that wants them to give up their protectionist position and lower entry barriers, sources with direct knowledge of the matter said.

Import taxes from 60 per cent to 100 per cent in the world’s fourth-largest car market rank