BMW Group India Chief Financial Officer Carsten Lammers has voiced strong concerns about the prolonged and widespread tax and Customs litigation prevalent in India. Speaking at the 3rd SIAM (Society of Indian Automobile Manufacturers) Automotive Taxation Conference, Lammers highlighted that some cases he handled a decade ago as a lawyer remain unresolved.
“When I joined BMW India, I was very surprised to see the number of tax and Customs litigation we have and how long they take,” Lammers stated. He emphasized that in an era of global uncertainty, businesses require clear and stable policies, particularly concerning taxation and customs regulations.
India's Potential Hinges on Policy Predictability
Despite these challenges, Lammers acknowledged India's immense potential to become a leading global growth engine. However, he stressed that realizing this potential fully depends on consistent and clear policies, simplified tax laws, and ongoing reforms aimed at enhancing the ease of doing business.
The automotive industry, Lammers noted, is undergoing a profound transformation driven by electrification, artificial intelligence, connectivity, and sustainability. These shifts, coupled with geopolitical changes and supply chain disruptions, necessitate a predictable regulatory landscape for sustained growth and investment.
Evolving Role of Tax Functions
Lammers also pointed out the significant evolution of tax departments, moving beyond mere compliance to become strategic partners in the boardroom. This shift allows tax professionals to actively contribute to assessing investment opportunities, managing risks, and effectively allocating capital. While acknowledging the growing role of AI in business operations, he affirmed that technology would augment efficiency but not replace the expert judgment of tax professionals.
Highlighting India's economic strengths, Lammers cited the expanding middle class, increasing consumer demand, and a robust manufacturing base as key growth drivers. He reiterated that unlocking this vast opportunity requires a stable policy environment, straightforward tax regulations, and continuous reforms to improve the overall business climate.