Mercedes expects govt support on taxation

Flagging concerns over the proposed hike in the GST on luxury cars, German automaker Mercedes-Benz has said it was eager to increase its output and headcount from the country if the government extended a little bit of support on taxation.

“We do not understand suddenly why the need to actually review the cess all over again. We have so much to contribute. We have high ends jobs that we are able to create, willing to create...” Mercedes-Benz India Managing Director and Chief Executive Officer Roland Folger told PTI.

Recently, the Union Cabinet approved promulgation of an ordinance to amend the GST compensation law to pave the way for increasing cess on mid and large sized cars.

According to the proposed ordinance that seeks to amend the Goods and Services Tax (Compensation to States) Act, 2017, the maximum compensation cess can be raised to 25 per cent, from 15 per cent.

Noting that the country was offering “significant potential” for luxury car market, Folger said, “we need a little bit of support on the taxation side and we could significantly increase our output and also the manpower”. The company was waiting to see the effect of the cess. “We are waiting for the timing and also waiting for the height of the cess,” he said.

Folger was here recently for the inauguration of the AMG Performance Centre, designed to offer an exclusive and customised Mercedes-AMG product experience. He said the company was not only keen on increasing the employment opportunities at its factory (in Pune) but also at the dealership level.

“We were able to bring in new technologies to India as well. We have made it very clear that we are eager to do that,” he said.