Volkswagen: Possible billion-euro fine in India

Volkswagen is suspected of tax evasion in India. If the Group is unable to disprove this, it could face a billion-euro fine.

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VW Virtus

VW builds models for the Indian market locally. These include the VW Virtus.

(Image: VW)

1 min. read

Volkswagen is facing a heavy fine in India. The Group is accused of having paid around 1.4 billion dollars too little import duty since 2012. If Volkswagen cannot refute these allegations, a fine of up to 2.6  billion dollars could be imposed. This was reported by the Reuters news agency, which referred to a document from the Indian customs authorities that was delivered to Volkswagen on September 30 2024.

Specifically, the Group is accused of knowingly violating Indian customs regulations. Volkswagen is alleged to have imported finished assemblies and declared them as individual parts. India levies different customs duties for this. Finished assemblies are subject to 30 to 35 percent import duty, while only 5 to 15 percent is levied on individual parts. Volkswagen has been asked to refute the customs authority's allegations.

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Volkswagen currently operates two plants in India. In Pune, the larger of the two sites, around 189,000 cars are built annually, including the Skoda models Kushaq and Slavia. In Aurangabad, the annual capacity is 62,000 vehicles. Audi Q3, Q5 and Q7 as well as Skoda Kodiaq and VW Tiguan, among others, roll off the production line here.

(mfz)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.