India Customs Flag Kia and VW for Import Trickery

India's customs department has made serious charges against Kia and Volkswagen for improperly classifying car imports to avoid taxes. Court documents show that Kia supposedly changed its import classification after a tax probe, replicating Volkswagen's situation. The government says Volkswagen is the only automaker to have improperly classified car imports for 12 years, and this amounts to $1.4 billion in tax evasion. This is part of a wider crackdown on the import practices of luxury carmakers. Both firms are subject to substantial tax demands, with Volkswagen contesting its $1.4 billion notice in court. The case is the latest example of tensions between global automakers and Indian tax authorities.

 

Source: Reuters