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Special tax on diesel cars may increase prices by Rs 2.55 lakh

Discussion in 'Non FIAT Cars and two wheelers' started by ramjn, Jun 13, 2012.

  1. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,245
    Chennai
    Linea 1.3
    Looks like the Government may be seriously considering this proposal this time. Just thinking what would happen if this is implemented. Most of the Diesel hatches will cost >10L OTR.

    Diesel cars may get expensive by Rs 2.55 lakh, with the oil ministry planning to impose a special tax on such vehicles. The government plans to impose additional levies of Rs 1,70,000 on small diesel cars and Rs 2,55,000 on medium and large diesel vehicles like sedans and SUVs to check dieselisation of the economy, triggered by the widening gap between petrol and diesel prices.

    "The oil ministry has asked the finance ministry to impose additional excise duty on diesel cars and the matter is under consideration," a government official said.

    Source - Special tax on diesel cars may increase prices by Rs 2.55 lakh - The Economic Times
    Last edited: Jun 13, 2012
  2. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    Biggest consequence will be environmental issue. The number of used cars will increase. In developed countries government think about future issues before implementing but our governments have the attitude of think about today worry about tomorrow late. They should instead do something to bring more hybrid cars by giving lot of subsidies and also other alternative options.
    Last edited: Jun 13, 2012
  3. theblack

    theblack Esperto

    Messages:
    2,188
    Bangalore
    i cannot believe that our GOI has such kids employed..
    What are they even trying to attempt .. I dont understand.
    Increasing the diesel price is the solution and they are simply beating around the bush...
  4. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    The current diesel owner's will get benefited. They can recover their depreciation.
    We got another topic after supreme court verdict on sunfilm to :punch:chair::boxer:A:rage
  5. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    Until governments don't start losing elections for such issues, they will keep burdening the section that contributes the most to nation building but votes the least. It seems the government is saying this is a temporary measure till they build consensus on de-regulating diesel prices. We all know once this special tax is levied it will never be taken back, people in Mumbai are still paying additional 15 paise on every ticket purchased in a BEST bus for the Bangladesh war! From 1971 to 2012, 15 ps per ticket sold, where has the money gone nobody knows & we have BEST declaring losses every year!

    It seems like the government cannot raise diesel prices because their allies wouldn't allow them to. You know the best way to have a consensus on this issue? Dare the Mamta's and others to go through with their threat of pulling out of the government if diesel is de-regulated. I bet all I have, NONE of the allies will do that - everyone wants to be in the government and mint money. Congress doesn't want to lose power either hence they will not bite the bullet. Put the blame on the allies, and the allies will walk around with a swagger that they are serving the aam aadmi while the country bleeds to bankcruptcy!

    It is the government & their idiotic policies that have created a diesel car market in India. They have killed the petrol car & now want to kill the diesel car too! In any case, diesel cars are on an average 1 Lakh more then petrol cars so by creating a demand for diesel cars over petrol's the government is anyway making more money in the form of higher excise duties & taxes. What about that?

    You want to curb diesel consumption? Give 24 hours power so that mall's, hospital's, school's, houses & shops stop using diesel for their gensets. The consumption in this segment is way more then what is consumed by passenger cars.

    The UPA has saddled the country with taxes after taxes with nothing to show in terms of developement of economy & infrastructure. I hope they don't get win a single seat in 2014.
    13 people like this.
  6. gurjinder

    gurjinder Staff Member Janitor

    Messages:
    3,989
    Punjab
    Amit has nailed it regarding where the real culprits are.

    Taxes on diesel cars will be an ignorant, foolish and a regressive step.
  7. gopscreative

    gopscreative Amatore

    Messages:
    215
    Chicago
    What else people of India can expect from a kiddish Oil Minister?
    Last edited: Jun 13, 2012
  8. Flywheel

    Flywheel Regolare

    Messages:
    302
    Pune
    We shall tax the middle class until they go bankrupt and become an “aam admi” and then we can think of some other schemes to bleed the economy and increase our deficit.
    2 people like this.
  9. Relativity

    Relativity Superiore

    Messages:
    853
    Chennai
    So existing owners of Diesel cars don't need to pay any additional excise duty or road tax? Neither is the price of diesel being touched.
    hard to believe that they wont come after existing diesel car owners but I think it would an administrative nightmare for the RTOs to manage an annual collection based on age of the vehicle.

    Glad that I picked up the Oil burner in time. The way things are shaping up, it may be more lucrative to upgrade to a Tjet in a year or two; instead of a Linea MJD :mrgreen:
    2 people like this.
  10. sungoa2010

    sungoa2010

    Messages:
    2,878
    Goa
    For railway government can allow subsidized rates( No body is going to fill diesel from where train get it's fuel). The government buses are getting filled from their own stations. That can also be subsidized no problem. The remaining people are the private transport and private vehicles. The profit of private transport will increase, though they will not be in loss. So what who gave them the guarantee that they have to make huge profit at the cost of public. Private vehicles will suffer but they don't have to pay extra 2L where they will save. Government can bring smart card system through with private transporting vehicle can have a fixed monthly quota of diesel at a lower rate. Their usage can be more than that or less than that. The difference they have to bear. This is better than getting nothing. I think this is still far better than levying extra tax on vehicles. Another indirect problem is this rule will discourage the research for more efficient diesel engines since whatever they achieve they have to pay the same tax. If at all they want to continue with taxing they should tax it proportional to the efficiency of engines. Small 1.3mjd/1.2tdi should be taxed less(or nill) compared to huge innova/safari/bolero and similar diesel engines which pollute more. This will at least generate a new momentum in industry for a better efficient diesel engine.

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