The Indian government denied Tesla’s request for lowering import duties, emphasizing that the laws already accommodate importing partially-built vehicles and assembling them at lower costs, according to Automotive News.
Chairman of the Central Board of Indirect Taxes and Customs Vivek Johri emphasized that the government had been looking at the tax structures and decided that current rules “are not a hindrance” to Tesla operating in the country.
In an interview on Tuesday, Johri said, “We looked at whether the duties need to be re-jigged, but some domestic production is happening and some investments have come in with the current tariff structure.” Johri continued, “So, it is clear that this is not a hindrance.”
India Tells SpaceX to Halt Starlink Efforts Immediately https://t.co/DyhkTbNrBk
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While Indian Prime Minister Narendra Modi and his administration are pushing Tesla to produce vehicles locally, Musk and Tesla are requesting the country lower import duties on its cars — with most taxes as high as 100 percent on imported vehicles.
So far, Tesla and the Indian government have been locked in a “weird stalemate situation,” as termed last month by one source with knowledge of the matter.
As of last year, Tesla is apparently already in talks with local parts suppliers in India, though the government also shared last year that it wants a detailed roadmap and sourcing plans before it considers lowering import duties.
