India in talks with EU to slash duty on import cars
Cars imported from European Union to India may get cheaper in the near future. As a part of the free-trade agreement discussions, the Indian government is likely to levy a 10 per cent duty on a fixed number of cars coming in from the Europe, down from the current rate of 60 per cent.
According to the discussions, India is looking at importing 2.5 lakh cars on which 10 per cent import tax will be levied. These imports will start with 40,000 cars in the first year with an increment of 5,000 units each year thereafter for a period of five years. Apparently, there are also talks of reducing the import duties to 30 per cent once the cars fall outside of the 2.5 lakh quota.
