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Exclusive: India accuses Kia of evading taxes of $155 mln in VW-like dispute

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India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs,
The Indian government has accused South Korean automaker Kia of evading taxes amounting to 15.5 billion rupees ($186.8 million) by misclassifying its vehicles to avoid paying a "social welfare surcharge." This accusation mirrors a similar dispute with Volkswagen, where the German carmaker was also accused of tax evasion. The issue centers on Kia's alleged misclassification of its vehicles, which led to lower tax payments. The Directorate of Revenue Intelligence (DRI) has issued a notice to Kia, which the company is currently reviewing. This case highlights ongoing tensions between international automakers and Indian tax authorities regarding vehicle classification and taxation.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/india-accuses-kia-evading-taxes-155-mln-vw-like-dispute-2025-02-05/ ]