Race organisers say they will pay tax bill
Last Updated: September 14, 2011 4:41pm
Fears that next month's inaugural Indian Grand Prix could be scrapped due to tax issues have been eased by the race's organisers.
Speculation that India's tax authorities were unwilling to grant Formula One teams a tax exemption on their equipment, on the basis they do not consider the October 30 race to be of national importance, had thrown the race into uncertainty.
Speaking at the Italian Grand Prix, McLaren team principal Martin Whitmarsh, who also serves as chairman of the Formula One Teams' Association, said the matter "was not straightforward", with teams expressing "serious" concerns over the estimated tax bill, believed to be just over £1million.
However, Indian Grand Prix organisers Jaypee Sports International (JPSI) have now said they are ready to step in and pick up any tax costs the teams incur.
JPSI chief executive Sameer Gaur said in a statement: "JPSI has full support from the government, the sports ministry and the customs department for the F1 event scheduled for October this year.
"We have an in-principle approval from the customs department for creating a customs bonded area for F1 equipment that will be temporarily imported to India.
"If required, as per the law of the land, JPSI will pay customs duties and taxes etc for the temporary import of equipment.
"The estimated value of this equipment is about Rs.150 crore (£20million) and the final duty payable on this will be approximately Rs.8 crore (£1million)."
Credit: Sky Sports (www.skysports.com)
No comments:
Post a Comment