Miscellaneous News
- Thread starter bd popeye
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Wumaoification of r/China continues. If the folks at r/Sino don’t step up they’ll be the reactionary forum in a couple more months!
Volkswagen sues India to quash ‘enormous’ $1.4 billion tax demand, legal filing shows
Volkswagen has sued Indian authorities to quash an “impossibly enormous” tax demand of $1.4 billion, arguing the ask is contradictory to New Delhi’s import taxation rules for car parts and will hamper the company’s business plans, court papers show.
Volkswagen’s unit, Skoda Auto Volkswagen India, also told the High Court in Mumbai the tax dispute puts at risk its investments of $1.5 billion in India, and is detrimental to the foreign investment climate, according to the 105-page filing which is not public but was reviewed by Reuters.
Indian authorities alleged Volkswagen imported “almost the entire” car in unassembled condition - which attract a 30-35% tax applicable on CKDs, or completely knocked down units, but evaded the levies by misclassifying them as “individual parts” coming in separate shipments, paying just a 5-15% levy.
Volkswagen India had kept the Indian government informed of its “part-by-part import” model and received clarifications in its support in 2011, the company says in the court challenge.
The tax notice is “in complete contradiction of the position held by the government ... (and) places at peril the very foundation of faith and trust that foreign investors would desire to have in the actions and assurances” of the administration, the Jan. 29 court filing states.
A government source earlier told Reuters that with penalties, Volkswagen India may have to pay about $2.8 billion if it loses the dispute. In 2023-24, VW India reported sales of $2.19 billion, and a net profit of $11 million.
High taxes and prolonged legal disputes have often been a sore point for foreign companies in India, with Tesla also publicly complaining about high taxes on imported EVs.
The tax notice “deals a body blow” to the much-advertised “policy of ease of doing business in India for foreign investors,” the company said.
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I guess India just doesn't like foreign investment in India. so if you import cars the tax on it is 30% but if you import just car parts then the tax is 15%. India's complaint is that very few car parts are actually produced in India and most of the parts are imported and then assembled in India. and even though the parts are being shipped seperately and not as kits India still decided to consider them as whole cars.
if India decides to go through with the extra tax and penalties then Volkswagen would be better off to just cut their losses and get the fk out of there.
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Indians really suck at managing a country. They are far too eager to quickly steal. Imagine fining a company $2.8 billion when net profit was $11 million over the year
Having said that, I am in full sappoort mode for this move. If anyone deserves to have their assets stolen, it's the euros. Quite ironic I would say..
You know, it really speaks to the quality of governance between US and China. Imagine if same thing happened with China, and Wang Yi publicly said this, and even People's Daily published the news. And then the day after, Panama publicly refuted that.
Would guarantee you that Xi would have kicked Wang Yi out from Beijing and subjected him to serious disciplinary measures the next micro-second.
It really sounds impossible, so impossible that even me typing this theory I have to constantly suspend my logic to try and think of this "scenario"
That this happens to the US in now almost daily basis and nobody is shocked or anything, says it all. US Empire is in terminal decline
When Trump tweets mindrot garbage, his fans eat it up.
When Musk tweets mindrot garbage, it's met with universal ridicule. US tech nerds have the charisma of a soggy potato.
It’s a feature not a bug. Little Marco is there to take the fall for Trump whenever he can’t actually accomplish one of his hare-brained schemes.
In some ways I already feel apprehensive of Indian Wumaos on twitter who were promoted and paid by Chinese media back in the 2019 era when the Chinese foreign ministry felt the need to pay and promote non Chinese journalists since western audiences only believe news about China if it comes from a non Chinese person. You get instances like that stankovic guy who was basically just another sexpat who decided he could dictate how his half Chinese daughter felt about the Japanese invasion Of China during ww2.
I have yet to see an India as erudite or objective or as clear minded as say Kishore Mabubhani but then and again he came from a low caste background and grew up in singapore.