Japanese auto major Toyota is suspending plans to launch new cars in India and is also putting a halt to fresh factory investments as it blames “prohibitive” taxes on vehicles for depressing consumer demand, leaving automakers with high costs and unutilised and idle capacities.The tax rates, the company says, has blunted the ease of doing business in India and has made vehicles expensive for customers. Also, with lower demand, companies have failed to utilize factory capacities and harness the underlying business potential.“Don’t treat this (auto industry) as a sin good. This is a sector that generates a lot of employment, goodwill, and lots of export potential,” said vice-chairman of Toyota. Viswanathan said it is unfair to load a customer who is already paying personal income tax with high taxation on goods such as cars. “…Why should s/he not benefit from a lower tax rate. There will be more people to buy. I am batting for the consumers.”Toyota runs its business in India in partnership with the Kirloskar family, the latter holding a minority stake in the company.