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New Taxes On Diesel Cars Will Hamper Industry
Mr Boneham was speaking to reporters after he announced ford opening 45 new showrooms across India. He said: “We hope to see a consistent legislative framework. I don't believe taxing diesel vehicles is the right approach when interest rates are already high. Taxing diesel vehicles is a regressive step." He estimated that the cost of a diesel car will increase by Rs.80,000 if the new tax is imposed.
Mr Boneham not only opposed this move but also suggested an alternative to the government. He said adding more taxes on a product that was already expensive when compared to petrol vehicles was not right. He suggested that the government could increase the price of diesel by 75 paise per litre to generate the same amount of revenue.
Mr Boneham is very optimistic about the auto industry"s performance this year. He is expecting sales to increase further once interest rates come down. Car sales in India were slower than earlier in 2011 as buyers postponed their purchases owing to increased lending rates and high fuel prices.
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