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Old 13th June 2012, 14:49   #256
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Hope that the "reports" are indicating that it will be levied on newly purchased cars and not the ones purchased in the last 1/2/3/4/5/10 years. With SC and Central Govt. on overdrive drive these days, the unthinkables are becoming reality of the day.

Sincerely hope someone does not make it a law or policy.

BH.
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Old 13th June 2012, 14:49   #257
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

and what s the guarantee that even after implementing this ridiculous proposal, the govt. will not raise prices of diesel?!!!! i can bet they will and then the fat good for nothing politicos will be the ones laughing all teh way to teh bank.

i swear, time for an Indian Tahrir square!
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Old 13th June 2012, 14:53   #258
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These numbers are just initial feelers. They will then rollback partially :-)
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Old 13th June 2012, 14:56   #259
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

It looks like a statement made for the sake of showing that they are thinking of something.

This will only drive up prices in the used car market for diesel cars. Moreover, if the issue is recovering subsidy from private diesel car users it excludes existing owners. Instead of charging absurd amounts for new car buyers (who wont buy such expensive cars in any case) they should consider charging 10K to each existing diesel car owner. This would generate more money than this hare brained proposal.

However, all said and done the ideal scenario would be no tax to any owner. Just deregulate diesel prices, reduce tax levies on it and dole out subsidies through income tax returns.
Oh and while you are it (whoever it is) please also reduce tax on petrol to rupee numbers instead of percentages please
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Old 13th June 2012, 15:00   #260
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Angry Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Increase duty on diesel cars up to Rs 2.5 lakh: Jaipal Reddy - The Times of India

There is a detailing in the above article about how he reached the additional figures.

Cheers!

Vinu
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Old 13th June 2012, 15:01   #261
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Big blow to the future diesel car buyers if this proposal is accepted.

Here is the quote from TOI on the argument by Oil Minister,

Quote:
Reddy pointed out that the proposed additional excise duties are equivalent to the minimum benefit that a diesel car owner derives from the fuel's price differential with petrol — at current prices — over a 10-year assumed life of a vehicle. Petrol in Delhi costs Rs 71.16 a litre against Rs 40.91 for diesel.

Reddy's arithmetic goes like this: he first calculates the total distance a vehicle is expected to clock in its 10-year life span, assuming an annual run of 18,000km. Then, he works out the fuel costs by taking a median mileage of 18km to a litre for small cars and 12km for medium/large vehicles. For good measure, he shaves off 10% of the total cost to level.

According to Reddy's calculation, the additional excise duty amounts to asking the diesel car buyer to pay upfront the price differential with petrol that he or she would enjoy later. A petrol car owner, in contrast, shells out every time at the pump.
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Old 13th June 2012, 15:06   #262
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

It appears that the government is hell-bent at exploring all options to increase costs (rather than reduce them).
Is this due to some economic strategy?
Who are the economic advisers behind these fuel and automobile price games?
Can we get to know their thought process through an RTI application?
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Old 13th June 2012, 15:07   #263
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

I dont think the Govt will do this. By this, they were actually helping car manufacturers a sudden increase in sales, may be its an "agreement" between car manufacturers and Govt.
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Old 13th June 2012, 15:07   #264
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Come on guys - I would still believe it if there were some sense or a credible source was mentioned.
  1. This is purely hogwash. Last time before the budget they brought out several such “news”. We all know how that went ahead.
  2. There is no data on how that figure was reached. Same was the case for last time’s 80k figure
  3. There is purposely no mentioning of tax on existing cars or just new cars. Purposely.
  4. The only outcome out of this, as it happened before the budget was it pushed people to prepone their decisions and buy the car. That's what I can see as one of the main reasons for such "news".

Yes, there is a strong possibility of something being done on petrol-diesel gap. But then that has been the case for the last few years! Lets not waste our time on this!
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Old 13th June 2012, 15:13   #265
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

One company who's decision makers would be sipping soda near a beach and monitoring this hike closely will be....'Honda'. The only company that did not invest in small diesel mill in India will have all the say with the silky smooth VTECs if the hike actually happens. And then their new motors for upcoming Civic, Accord, CR-V will just need an existing rev happy 1.8 or 2.4L petrol. Hike of 1.7 lac on small car is plain absurd, a petrol car in the same kind of money (principal, car loan interest and diesel running cost adjusted) shall run over 40000 kms, that's almost 3 years of running cost for a small car buyer in the city.

And how much a loss it would be for the auto companies heavily invested in diesel motor plants, m&m, tata, mercedes, bmw......

Last edited by gaurav_diavolo : 13th June 2012 at 15:14.
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Old 13th June 2012, 15:22   #266
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Why can't they tax the diesel cars based on the ARAI certified fuel efficiency rating? For example, for every KMPL below 25, 1% extra tax on ex showroom price. This way, cars like Swift and Punto will pay a 4-5% tax (because they give 20-21 kmpl), while the cars with less efficient engines (either because they are big or come with luxury cars, or because their technology is predates the wheel) pay more.
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Old 13th June 2012, 15:30   #267
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Wow. Excellent idea by the think tank. I only hope it is not levied retrospectively as a way to milk current car owners. I am sure the Car makers will be up in arms against this and will not allow this to become a law.

Look at how the IITs are snubbing the HRD minister on the entrance test issue Just hope the car makers have the guts to do something similar. All said, the current government is trying very hard to ensure that we see new faces in the next general elections.
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Old 13th June 2012, 15:48   #268
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

I feel the government should start educating the public about public transport and it's benefits vis-a-vis a petrol/diesel car.

This fuel pricing chakkar draining the exchequer and high taxes which will not be reduced is never ending. It's fodder for the opposition parties and the populist parties.

And the ones who are on the hot seat are impotent to take a call and decide the next step.
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Old 13th June 2012, 15:52   #269
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

That is a rumor.
But here is a fact.
We have a car manufacturers lobby.
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Old 13th June 2012, 15:55   #270
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Quote:
Originally Posted by srishiva View Post
Our country needs a different kind of fuel in between petrol and diesel I think
It won't be long before the Govt. starts taxing that as well.

The whole idea behind such tax strategies is to ensure that the rich are taxed and the money goes into infrastructure and growth. But that is clearly not happening.

Quote:
Originally Posted by Ford5 View Post
I feel the government should start educating the public about public transport and it's benefits vis-a-vis a petrol/diesel car.
I believe that this is the ONLY way out of this craziness. Improve public transport. Encourage use of cycles. Tax 2nd and 3rd cars of a household.
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