Toyota Kirloskar, which has been manufacturing cars near Bidadi, will have to pay ₹3,733 crore to the State government when the 18-year deferment period on tax ends in six months from now.
Replying to JD(S) member M. Chandrappa during Question Hour on Monday, Minister for Major and Medium Industries K.J. George said that this amount was the deferred tax payable with respect to sale of finished goods by the company.
Toyota Kirloskar started production in two phases — phase one in December 1999 and phase two in December 2010. Tax deferment was offered to the company by the government as an incentive for a period of 18 years for both phases. “There is still six months’ time for the company to remit the tax pertaining to phase one. In phase two, the dues are to the tune of ₹909 crore,” he said.
Mr. George said the company had abided by and satisfied all the conditions imposed in the government order, including providing jobs to locals according to the recommendations of the Sarojini Mahishi Committee report.
