Tax issues around Indian GP must be resolved: Vijay Mallya

Mallya’s comments on a day when F1 boss Bernie Ecclestone confirmed that the Indian Grand Prix will be dropped for 2014 to return in the first half of 2015.

Vijay Mallya
Vijay Mallya

F1 teams have been finding it tough to deal with India’s strict tax policies, including the customs duties levelled on them and the drivers on each visit.
Mallya said it would be a pity if tax issues jeopardise the Indian GP, which started in 2011.

“Yes there is a problem with India’s tax authorities, but India’s tax authorities tend to be a very difficult bunch,” Mallya was quoted as saying by ESPN on Tuesday.

“They even launched a humongous tax claim on Vodafone and Nokia and other multi-national companies. This sort of standoff on taxes is nothing unusual.

“Their logic is that there are 19 races and one race is India, therefore 1/19th of all revenue generated in Formula One is subject to Indian tax.

From a narrow-minded, Indian taxman’s point of thinking maybe that is justifiable, but we need to sit down with them and engage with them and say, ‘Listen, this is not the only country that’s hosting an F1 race.

There are other countries that have been hosting F1 races for decades and they don’t make the same demands. So how can you,’” asked the businessman. 

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