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One time road tax gone but pay every year now!!

Discussion in 'Hangout' started by Sat-Chit-ananda, Nov 26, 2012.

  1. Source FE 'Levy extra Rs 50k annual SUV road tax'
    Looks like Govt is not worried about Diesel cars but SUV's, I also thought a person who can spend 18-25 lakh on SUV needs subsidized diesel?
    New Delhi: A proposal to levy an annual road tax -- higher by up to Rs 50,000 for diesel SUVs than petrol driven ones -- has been made to the Finance Ministry to help reduce the fuel subsidy burden, Kirit Parikh, who heads a think-tank, today said.
    The auto industry, however, said any such step to impose additional taxes on the sector will not "make sense".

    Parikh, who was roped in by the government to check the mounting fuel subsidy burden, said diesel prices should be made market-driven after fixing the subsidy cap at Rs 9 per litre.

    A former Planning Commission member Parikh now heads the think-tank Integrated Research and Action for Development.

    "Instead of looking at a one-time diesel tax on new purchases, the alternative could be to abolish the existing one-time road tax and make it annual and apply a differential between petrol and diesel vehicles," Parikh told reporters here on the sidelines of a SIAM event.

    Asked what could be the difference on road taxes between diesel and petrol-driven vehicles, he said: "For normal cars, it can be higher by between Rs 10,000 and Rs 20,000 for diesel version and for the sports utility vehicles (SUVs), it should be higher by up to Rs 50,000."

    Parikh said the proposal has been submitted to the Finance Ministry.

    Reacting to the development, Society of Indian Automobile Manufacturers (SIAM) Vice-President Vikram Kirloskar, who is also the Vice- Chairman of Toyota Kirloskar Motor, said: "Today, 45 per cent of selling price of a vehicle is tax and any additional tax does not make sense."

    Calling for deregulation of diesel, he said: "We don't want diesel vehicles to be over-taxed. We would rather have market pricing of diesel."
  2. mvb4u

    mvb4u Regolare

    Grande Punto 1.3
    What is the position of already registered vehicles?
  3. naveen2cool

    naveen2cool Superiore

    Nothing is going to happen. We have been listening to these kind of ideas for a long time now.

    removing diesel subsidy by saying why the rich should not be subsidized is a very wrong notion. The poor, meaning those who do earn considerable amount but don't pay taxes get to enjoy all the subsidy and free items given by government utilizing the tax money paid by us but what do we get? NOTHING!
  4. theblack

    theblack Esperto

    naveen2cool, buddy dont be so cold towards the indian govt, Indian govt is known to take Light years to come up with a constructive law while it only takes minutes for them to make laws like this.
    Look at the NO tints thing.. it was over in a flash ;-)
    1 person likes this.

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