Tata Motors falls on likely luxury car tax in China
NDTV -Tata Motors shares fell 2.56 per cent at around noon, on reports that luxury automobiles are likely to taxed 20 per cent in China. The luxury tax is likely seen at least 1.7 to 1.8 million Yuan.
Tata Motors subsidiary Jaguar Land Rover basket's top end of Range Rover falls in this bracket.
"China willing to pay a premium to buy luxury vehicles," global investment firm, Macquarie said.
Last time a new tax was implemented in China on luxury automobiles was in March 2006. Luxury automobile manufacturers are awaiting more clarity from the government.
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