dr_nishu

Green Tax: A Hurricane to all

Recommended Posts

green.jpg 

As everybody knows here that after Deregulation Petrol prices are heading Skywards now & On the other hand more & more Customers/Car seekers are opting towards Diesel options.

Since, Our Govt. Officials seems to be getting more concerned towards Enviornment now a days & in their sense Modern Diesel(Common-Rail & BS-IV) cars are more Polluting than Petrol cars, which is partially true till to date as Diesel supplied here is Non-ULSD(Ultra low Sulphur diesel) type, which leads to more SO3 & SP emissions

And as per Parikh Committee, An Extra tax(=Green Tax) should be Imposed on Diesel cars, which is propsed at around Rs.80,000 over the Retail price of a car.

Which adds up further by 15-20k, if the Engine capacity of a car crosses 2000cc, that means a Direct attack of Rs.1-1.2 lakh over an SUV featuring 2.0l engine.

Since, India is a Price Sensitive & Value Concious market, with each manufacturer using its Scalpel on all possible areas to Rip off the costs from its cars but now this added Tax to every Diesel car, especially hatchbacks & entry level Sedans will kill their VFM proprtion further & make the already expensive Corresponding diesel versions about 1.5-2.0 lakhs expensive over its Petrol counterpart, which presently costs only 80,000-1 lakh more than the latter.

& Overall, It'll Ruin the most of the Automobile Industry of the country which is heavily banking for Diesel engine projects for their each & every car here, Starting from Nano onwards.

All this will affect the country's Economy & Inflation levels, by making Personal transport expensive Irrespective of over the Public transport.

What's your take ACI-ians !!
dr_nishu2011-02-20 16:36:02

Share this post


Link to post
Share on other sites

Is this a new news. IIRC, I have been reading this news for almost 6 months or so and IMHO, this would never happen.

If it happens, companies such as Tata, M&M, Fiat, Skoda, VW, Ford will all be history in our market, so Govt won't kill so many investors at one shot. 

 

To add more fuel, the new FTA with Japan will reduce price of CRV, Fortuner, Innova, CRV, Outlander. So what will happen to Scorp & Safari, if these gets dearer by 2L.
creativebala2011-02-20 17:15:03

Share this post


Link to post
Share on other sites

The auto industry is a big lobby and will take the matter with utmost care.

Why can't the government control burning of garbage in India rather than trying to control emissions from cars when burning tyres and garbage causes 1000X more pollution.

Share this post


Link to post
Share on other sites

i am some how not convinced. Have Parekh committee took into consideration the amount of miles an oil burner does. Which petrol/diesel cars have they tested to arrive at this conclusion?

Diesel is a newer fuel in India for cars. Instead of taxing it, govt should implement tougher norms to make diesel engine standard USLD

Share this post


Link to post
Share on other sites

The auto industry is a big lobby and will take the matter with utmost care.

Why can't the government control burning of garbage in India rather than trying to control emissions from cars when burning tyres and garbage causes 1000X more pollution.

Agree. Normally the policies always target people who are easy at. A normal car buyer will end up by paying more. There is a lot happening wrong here but the thing is, it is not easy to take them to course. whereas by imposing tax, customer's pocket can be easily cut.***EDIT***Don't worry much, nothing shocking will happen, things will go slowly. And any tax in the beginning will start with some minimal proportion, but definitely will become a trouble in future.ashikawa2011-02-20 17:30:06

Share this post


Link to post
Share on other sites

A Saving grace for those Menace Ideas, better is to Exempt l'll bit of taxes from Petrol cars as per their engine capacities to promote them, as the Fuel driving them is already Deregulated for the Oil majors to decide on.

People will automatically become more Interested in Petrol vehicles thereafter.

But sadly, Reducing taxes is a Rare practice for our Govt. to practise.

Share this post


Link to post
Share on other sites

This isnt mainly due to pollution caused by diesel engines. This is for the fact that 80 lakh BMWs are paying the same price for diesel as a tractor owner.

@DD

They cant increase the price of Diesel as this would without a doubt result into massive price rise due to increase in transportation costs.

Share this post


Link to post
Share on other sites

There is a dedicated anti-Diesel lobby led by the CSE at work. They will like to ban all diesels.

Rs.80,000 so called Green Tax is as per the Parikh committee recommendation to compensate the state for the 'subsidized' (not that it is, just taxed less) diesel being used by these vehicles. 

Share this post


Link to post
Share on other sites

The Rs. 80.000/- to be levied on Diesel cars / SUVs is not the Green Tax. It was proposed to equalize the higher excise duty on petrol paid by the end consumers i.e. car/SUV owners, taking into account an average running of 8,000 kms per annum.

The average running may be true for a petrol vehicle but for diesel it should be around 15,000 kms. So the whole argument of committee seems to be flawed.

As for as pollution from diesel vehicles is concerned, best way is to control the adulteration, which in turn is possible only when subsidies are removed.

Share this post


Link to post
Share on other sites

This issue is quite sensitive.

Firstly, I think discrimination of any sort should not take place in a free society. So this concept of labeling diesel cars as pollutant creating machine and imposing heavy tax on them so as to make them economically inviable is a retrogressive step.

Green tax if at all to be imposed should be strictly based upon the emission of a vehicle under standard testing conditions. If a diesel car is emitting more pollutant than a petrol car then its OK to fine that car. However if reverse is true than there should be any tax on the diesel car just because it runs on diesel.

On the other hand, I feel it unethical to own a 20 Lakh rupee car and run it on a fuel which has been subsidized so that poor can be befitted.

Ideally only the transport vehicles (Bus, Trucks & Train) should got the benefit of the subsidy so that inflation (food inflation in particular) can be kept in check. But knowing the level of corruption prevailing of our country, I doubt its feasibility.

UID can be used to transfer cash benefit to deserving people (below poverty line) and remove all subsidy. Lets hope something will happen for the better.itssanguine2011-02-21 05:51:05

Share this post


Link to post
Share on other sites

This should called Demolition Tax because it will destroy all car companies.

There could an increase of 50k on suv's or car's above 2000cc and 25k increase below that.By doing this they will add more inflation.I think India's economic boom is entering it's last phase,every thing that goes up has to come down some day.

Share this post


Link to post
Share on other sites

I don't think that the AUTO cartel is allowing this to happen. This is *****ic way of controlling inflation. Why not start looking at reducing some taxes on Petrol (currently more then 100%!) ? If that happens, Diesel may not be as lucrative to buy.

How about steps to control Real Estate prices ? Focus on abolishing corruption etc ? This government needs to get priorities right ASAP. Diesel prices shouldn't be a priority at this moment.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...