Stability and predictably in operating environment is the key to successful business performance in India, Paul Harris, Asia Pacific Regional Director Rolls-Royce said, referring to constant changes in taxes for luxury cars.
Rolls-Royce on Thursday unveiled New Phantom for the Indian market in Chennai. The car is priced at ₹9.5 crore for standard wheelbase and ₹11.35 crore for extended wheelbase, ex-showroom, making it most expensive car in the country.
“India has seen the most changes in the shortest period of time, in my 8 year tenure. That is definitely not good for us and consumers,” Mr. Harris, who leads the ultra luxury car maker’s Asia Pacific regional office from Singapore said.
“In 2017, India was an uncertain market due the roll over effect of demonetization and introduction of GST which caused delay in customer buying decisions,” Mr. Harris noted.
He also said the current tax rates for luxury cars stands at 214% (including GST, import duties and other cess). Prior to GST, the tax rates hovered around 184%.
In the recent Union budget, the custom duties on luxury cars very hiked.
“Taxation policies on automotive lacks stability. You can’t keep tinkering with a business area and expect it to perform. Price position has changed so much and customers need confidence to make buying decisions. Stability and a degree of predictability is the key,” Mr. Harris said.
He also said stability is what leads to good business performance, creates jobs and wealth. “We have to operate in current environment and hope for things to change.”
