The German automobile manufacturer Volkswagen officially announced that as of now it is planning to halt its proposed investment plan of Rs. 2,000 crore in the state of Maharashtra, India. This has come into effect because the VAT refund issue is not settled as of now with the Maharashtra government.
The Chief Representative India of Volkswagen Group, Mr. John Chacko said, “At the moment we have decided to put a halt on our future strategies related to investment plans in Maharashtra. But the normal investments required for usual operations of the company is executing flawlessly.
The response came out against an inquiry made regarding the recent issues going on with Maharashtra government over the change in VAT refund policy. Also whether the current issue has impacted the major expansion plans going on in the mind of group that comprise of Rs. 2,000 crore investment to be made for the project.
In order to attract investors, previously the state government made an initiative to refund VAT paid on all cars that were sold by companies, which have manufacturing units in the state. But later, the plan got altered last year and the state government stated that it will make the VAT refund only on cars that are sold within the region.
Mr. Chako further remarked, “We want the state government to stick to its commitments and we are in discussion with the panel to sort out the issue. Essentially we want to execute projects in a stable conducive environment and also want to get what was committed.”
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