Indian F1 Grand Prix fears eased, Jaypee ready to pay tax bill: Report

London, Sep 15: Fears that next month's inaugural Indian Formula One Grand Prix at Greater Noida's Buddh International Circuit could be scrapped due to tax issues have reportedly been eased by the race's organizers, the Jaypee Sports International (JPSI). Speculation that India's tax authorities were unwilling to grant F1 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.
However, the JPSI have now said that they are ready to step in and pick up any tax costs the teams incur, Sky Sports reports.
"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," JPSI chief executive Sameer Gaur said in a statement.
"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 150 crore rupees and the final duty payable on this will be approximately eight crore rupees," he added.