’No decision’ yet over India GP tax threat

No solution has been found yet to a boycott threat ahead of the inaugural Indian grand prix.

FOTA chief Martin Whitmarsh revealed at Monza that teams and drivers will be subject to big tax bills when they travel to Delhi next month.

"You don’t go somewhere if you’re going to be penalised," said the McLaren team principal.

Behind the scenes, private race organisers Jaypee are "locked in a tussle" with the Indian government, the Times of India reports.

The problem is the customs duties laws, with the organisers asking the government for an exclusion zone to be declared so that the F1 cargo can be shipped without the assumption it is being imported and exported.

The report said the glitch dates back to the government’s classification of formula one as a form of entertainment rather than a sport.

Since then, Jaypee has been writing letters and meeting with officials.

A letter dated September 7, two days before Whitmarsh’s Monza comments, confirmed the Indian grand prix can go ahead "at no cost to the government".

But in fact "No decision has been taken yet," an unnamed official of the Indian revenue department insisted. "It is being discussed," the source added.