“India introduced an additional ‘green’ tax on car sales on Monday, aimed at helping fight high levels of air pollution and congestion but hitting car makers that fear this could stall a fragile recovery in the market for their products. In his annual union budget, Finance Minister Arun Jaitley imposed a sales levy of up to 4 percent on new passenger vehicles, effective immediately, spurring a sell-off by investors in auto stocks like Maruti Suzuki India Ltd and Tata Motors. The tax is another blow for automakers, coming after the Supreme Court temporarily banned the sale of large diesel cars in Delhi, one of the world’s most polluted cities. As a result of the new tax growth in sales in the year to end-March could come in a few percentage points lower than previously expected, said Vikram Kirloskar, vice chairman of Toyota Kirloskar Motor, the local unit of Toyota Motor Corp, the world’s largest carmaker.
“…While increasing taxes, India is also expected to spend 970 billion rupees over the next fiscal year on improving and building new roads and highways, which car makers say could partially offset the negative impact.” The New Indian Express (Reuters). Read it on delhiair.org.