NOVEMBERASIA BUSINESS OUTLOOK8SAUDI-UK TRADE RISES 65.8 PERCENT TO 22.5 BILLION IN MARCH 2023TOYOTA MOTORS LOBBYING THE INDIAN GOVERNMENT TO CUT TAXES ON HYBRIDSTotal commerce in goods and services between Saudi Arabia and the United Kingdom climbed 65.8 percent to 18.5 billion pounds ($22.5 billion) in the fiscal year ended March 2023 compared to the previous year. According to the UK's Department for Business and Trade, the country's exports to Saudi Arabia surged 47.8 percent year on year to 12.9 billion pounds in the fiscal year ended March.The UK's total imports from the Kingdom surged 131 percent to 5.5 billion pounds during the period under review.The department said the Kingdom was the UK's 21st largest trading partner in the year ending March, accounting for 1.1 percent of total UK trade. The report further stated that UK exports to Saudi Arabia in the year ending March constituted mechanical power generators, cars, medicinal and pharmaceutical products as well as jewelry and general industrial machinery, as per arab news.Saudi Arabian imports to the United Kingdom comprised refined oil, other mechanical power generating components, crude oil, nonferrous metals, and basic plastics. In the year leading up to August 2023, UK exports to Saudi Arabia climbed by 43.5 percent compared to the previous year's similar period. In comparison, UK imports of Saudi Arabian commodities climbed by 8.5 percent during the same time.When compared to the end of the first quarter in 2022, UK service exports to Saudi Arabia climbed by 50.4 percent in the first quarter of this year. During the same time period, UK imports of Saudi Arabian services surged by 66.4 percent. Toyota Motor of Japan is lobbying the Indian government to cut taxes on hybrid vehicles by up to one-fifth, claiming they are far less polluting than petrol cars but do not receive commensurate policy treatment, according to a company letter. The world's largest automaker intends to increase production capacity to meet a surge in Indian demand for hybrids, but Prime Minister Narendra Modi's government has prioritised electric vehicle (EV) sales, offering companies millions of dollars in incentives to build EVs and batteries.In India, electric vehicles are taxed at 5 Percent, while hybrids are taxed at 43 Percent, just below the 48 Percent levied on petrol vehicles.According to Toyota's letter to Modi's Niti Aayog think-tank, which plays a key role in policymaking, this 5-percentage-point differential favouring hybrids over petrol cars is "insufficient" given the lower emissions and better fuel consumption hybrids offer. According to the letter from Toyota's India country head, Vikram Gulati, the tax differential over petrol cars should be as much as 11 Percent for hybrids and 14 Percent for flex-hybrids.According to Reuters calculations, this amounts to a tax rate of 37 Percent on hybrids and 34 Percent on flex-hybrids, representing savings of up to 14 Percent and 21 Percent, respectively."We would kindly request for a proportionate policy support," Gulati wrote in the Sept. 20 letter, which has not previously been reported.Toyota, which popularised hybrid technology with the Prius, has faced criticism from investors and climate groups for still supporting hybrids, which it says make better sense for markets where the infrastructure is not ready for EVs. NEWSROOM
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