H-D seeks tax breaks in India market entry
May 11, 2007
Filed under Features
Harley-Davidson is keen to enter the Indian market despite a high duty structure, and is seeking tax concessions from the Indian government.
The company gained permission to sell in India last month, but later said it might shelve its plans.
India imposes a 60 percent customs duty and a 30 percent tax on larger motorcycles, sharply increasing the cost of the vehicle for Indians.
“We remain very much interested in entering India and have not scrapped our India plans,” Tim Hoelter, H-D’s vice president of government affairs, told reporters.
The Press Trust of India quoted Hoelter last week as saying “daunting trade barriers” erected by the Indian government were discouraging companies like his from entering the market.
“We are looking for some concessions from the government,” Hoelter said. “We want to enter India, as it is a key market, but we don’t know when will it be.”