Should a tax on foreign-made pickup trucks that was first instituted way back in 1963 as a retaliation for a European tax on U.S.-bred chickens affect sales of modern and fuel efficient pickups from India in the United States? That's the question that Global Vehicles, hopeful U.S. importers of India's Mahindra pickups, is currently asking policymakers in Washington. The answer they are hoping for would rid the United States of the so-called chicken tax and would allow the importation of Mahindra's latest trucks, featuring clean diesel engines and around 30 miles per gallon, without the 25 percent tariff.
According to John Perez, CEO of Global Vehicles U.S.A. Inc., "We're seeking an exemption from Washington, based on the environmental benefits of what we're bringing in." Mahindra's new truck is scheduled to go on sale in the U.S. in October or November of this year for $22,000 to $25,000, meaning the tax would amount to over $4,000 on each of these vehicles.
[Source: Automotive News - sub. req'd]