Gujarat government gives tax benefits to Ford and Peugeot

Saturday 25 February 2012, 11:37 AM by Vikas Yogi

In a written reply to a question asked by congress president Arjun Modhvadia in the assembly on Friday, the Minister of State for Industries Saurabh Patel said that the Chief Minister Narendra Modi led state government of Gujarat has offered tax benefits to the car makers like Ford and Peugeot for establishing their manufacturing units in Gujarat.

The Minister of State for Industries further stated that tax benefits given to these car makers were in the form of exemption from paying registration charges and stamp duty, and refund of the VAT (Value Added Tax) that Ford India would be paying for coming 15 years. Similar VAT related relief was also given to Peugeot.

It is to be mentioned here that Ford India has lined-up a heavy investment of about USD one billion that will be used to set-up new engine and car manufacturing facility in the state of Gujarat by year 2014. The firm plans to produce 2.40 lakh cars and 2.7 lakh engines per annum from its Gujarat facility along with creating as many as 5,000 jobs in the state.

The French car maker Peugeot on the other hand, has selected a land in Sanand, where it plans to set-up a manufacturing unit by year 2016 with a capacity of 3,40,000 units per annum.