Volkswagen India unit faces $1.4 billion tax evasion notice

Estimated read time 1 min read

AutomotiveBusiness & Finance

Reuters was first to report that India has issued a notice to German automaker Volkswagen for allegedly evading $1.4 billion in taxes by “wilfully” paying lesser import tax on components for its Audi, VW and Skoda cars. Volkswagen shares fell as much as 2.13% on the Frankfurt stock exchange after the Reuters report. 

Why it matters 

News about the potential liability, which could be as high as $2.8 billion with penalties, could strain VW’s India business. The company is a small player in India but has plans to invest $1.8 billion to build EVs and hybrids in Maharashtra. The Wolfsburg-based carmaker is also locked in an escalating dispute with its labour in Germany over plant closures and layoffs while Chinese competitors are attacking Europe’s established carmakers on their home turf. 

Article Tags

Topics of Interest: AutomotiveBusiness & Finance

Type: Reuters Best

Sectors: Business & Finance

Regions: Asia

Countries: India

Win Types: Speed

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

Source link

You May Also Like

More From Author

+ There are no comments

Add yours