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Old 13th June 2012, 23:13   #301
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

A fact which has not been mentioned is that the calculation is based on a 10 year period. Does this mean that Diesel subsidy is going to remain for the next 10 years?
Is it a conspiracy to keep the next elected government from deregulating diesel prices?
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Old 13th June 2012, 23:18   #302
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Perfect UPA-II economics.

Meddling where it has no business (market dynamics) and making a huge noise after the horses have bolted. We are a dieseled economy out and out, all courtesy their pricing strategy.

Now that everyone and their donkey wants a diesel, they wake up from their Rip van Winkle sleep. Voila - knee jerk politics result!
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Old 13th June 2012, 23:26   #303
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

In my opinion all the politicos are just trying to kill the reasoning and thinking in the middle class minds they want a non intelligent, non pro active middle class by burdening them into heavy taxes and making them more confines to the problems of their daily life. this will for sure bring an INDIAN SPRING like the arab spring and for a year if we all unite as indians and the kids of this motherland we can scare the hell out of these politicians. may be its time for manmohan singh and chidambram to go to school again and study economics again.
SHAMEFUL PROPOSAL.

Last edited by Rehaan : 15th June 2012 at 17:38. Reason: No need to mention abuses. Also please remember to capitalize words at the start of new sentences, as per your signature ;)
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Old 14th June 2012, 03:44   #304
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Noticed that there are other governments also that use higher taxation for diesel vehicles.

For Eg: in NZ, there is a distance tax for all heavy vehicles (more than 3.5 tonnes) and those using Diesel and these are to be bought for a particular amount of Kms, say 5000 or 10,000 Kms and displayed in the wind shield--> Since diesel is not taxed at pumps and heavy vehicles cause more damage to the roads.
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Old 14th June 2012, 10:00   #305
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Default Re: Govt plans to impose additional levies on diesel cars

Why do those who knows well how to run the economy better, are stuck up in front of their computers? Why do everybody here think that they know better than anyone else out there? Whatever a govt does, there would be at least a few to criticize them. It is especially true with the current govt, whom according to the left are too capitalistic and for the religious right, are too socialistic.

Like it or not, but, what those free-market lovers can do at present is to pray for a non-socialist government in future.

But the irony is that, the very folks who want a free-market system when it comes to buying cars, want socialist system when it comes to pricing diesel and petrol. There is no right wing in this country, only religious right who are socialists for receiving benefits and capitalists when they have to pay taxes.
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Old 14th June 2012, 10:33   #306
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Quote:
Originally Posted by rameshnanda View Post
The title says it all. It's a rumor right? Why do we over-react here?
Definetly title needs corrections. There is a definite proposal from Mr. Jaipal Reddy to finance minstry about this. So Rumour no. Proposal Yes.

@Mods: I see this topic can be merged with Rationalizing diesel prices topic.
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Old 14th June 2012, 10:38   #307
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Default Re: Govt plans to impose additional levies on diesel cars

Almost every new car buyer in my organisation is straightaway looking only at diesel options (not even a thought about petrol) even when they don't have past data about their usage (1st time buyers) or even when they know that their running is too less with current car. Since this trend is not going to change in the near future, as raising diesel prices at par to petrol would have inflationary impact on all commodities, the only way around seems to be to tax diesel vehicles. Don't see anything wrong in this - just that they need to have a more logical way of applying this tax than simply saying 1.7lakhs for small cars and 2.5 for large cars. And while they are at it, maybe they can think of ways to tax the existing diesel cars/SUVs on the roads. No point penalising only new-car buyers.

Last edited by supremeBaleno : 14th June 2012 at 10:40.
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Old 14th June 2012, 10:44   #308
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Default Re: Govt plans to impose additional levies on diesel cars

They are on the horns of dilemma. Adding taxation to Diesel cars (at lest to me) means adieu to realistic diesel pricing (the so called subsidies will continue at least till 2014). They moot point is whether they have the courage to face Mamata's ire and increase the price of Diesel (and LPG, Kerosene, etc). The latest Mamata tantrum may encourage them to do it faster.

The MoH is doing its best to derail the UID since it is the only option available at the moment to 'target' subsidies. After all how will they garner election funds, so anything rational is out.
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Old 14th June 2012, 11:19   #309
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Default Re: Govt plans to impose additional levies on diesel cars

This additional tax can't be a long term solution, even otherwise its already a losing proposition. Can you revoke the tax once you are able to rationalize Diesel prices? What happens then to the owner who have already pre-paid the tax? Will they need to buy Diesel at increasing rates?
If this additional tax comes in, to me that is a signal that Diesel will be a controlled commodity in the long term.
But then cars alone are not the culprits, you will also need to tax generators which are the next bigger consumers after all types of automobiles. Not a well thought decision.
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Old 14th June 2012, 11:42   #310
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Default Re: Govt plans to impose additional levies on diesel cars

So, now is the best time to buy a used Petrol car?
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Old 14th June 2012, 11:54   #311
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Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by romeomidhun View Post
So, now is the best time to buy a used Petrol car?
He...he quite my thought too, I am looking at the corollary, time for petrol owner to delay their selling?
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Old 14th June 2012, 12:11   #312
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Default Re: Rumor: Rs.1.7 to 2.5 Lacs Extra Tax On Diesel Car

Quote:
Originally Posted by man_and_machine View Post
This additional tax can't be a long term solution, even otherwise its already a losing proposition. Can you revoke the tax once you are able to rationalize Diesel prices? What happens then to the owner who have already pre-paid the tax? Will they need to buy Diesel at increasing rates?
If this additional tax comes in, to me that is a signal that Diesel will be a controlled commodity in the long term.
But then cars alone are not the culprits, you will also need to tax generators which are the next bigger consumers after all types of automobiles. Not a well thought decision.
Has the Govt's EVER made decisions keeping in mind long term effects??

Quote:
Originally Posted by civic-sense View Post
Why do those who knows well how to run the economy better, are stuck up in front of their computers? Why do everybody here think that they know better than anyone else out there? Whatever a govt does, there would be at least a few to criticize them. It is especially true with the current govt, whom according to the left are too capitalistic and for the religious right, are too socialistic.

Like it or not, but, what those free-market lovers can do at present is to pray for a non-socialist government in future.

But the irony is that, the very folks who want a free-market system when it comes to buying cars, want socialist system when it comes to pricing diesel and petrol. There is no right wing in this country, only religious right who are socialists for receiving benefits and capitalists when they have to pay taxes.
Perhaps because the people controlling the economy (running the economy is done by all the participants - like those sitting behind the comp and generating revenue - so its a wrong term), are the people who are "elected" by the public.

The Public doesn't care whether the particular chap is great in economics or mathematics or for that matter any other reasonably required ability while giving votes.

Quote:
Originally Posted by jeepbug View Post
In my opinion all the politicos are just trying to kill the reasoning and thinking in the middle class minds they want a non intelligent, non pro active middle class by burdening them into heavy taxes and making them more confines to the problems of their daily life. this will for sure bring an INDIAN SPRING like the arab spring and for a year if we all unite as indians and the kids of this motherland we can scare the hell out of these politicians(i wont use an abuse in punjabee here as this word "politician" has become the biggest abuse of our times). may be its time for manmohan singh and chidambram to go to school again and study economics again.
SHAMEFUL PROPOSAL.
This will never happen in India. Especially if you believe the middle class involvement.
Perhaps we may have 1-2 isolated incidents of such demonstrations, which will be promptly curbed by the govt in power.
Sorry to blow your revolutionary bubble.

Last edited by alpha1 : 14th June 2012 at 12:12.
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Old 14th June 2012, 12:24   #313
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Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by sgiitk View Post
They are on the horns of dilemma. Adding taxation to Diesel cars (at lest to me) means adieu to realistic diesel pricing (the so called subsidies will continue at least till 2014). They moot point is whether they have the courage to face Mamata's ire and increase the price of Diesel (and LPG, Kerosene, etc). The latest Mamata tantrum may encourage them to do it faster.

The MoH is doing its best to derail the UID since it is the only option available at the moment to 'target' subsidies. After all how will they garner election funds, so anything rational is out.
+1. IMHO, if they want to go ahead with additional taxation of new diesel vehicles, it would be better if they can impose a tax on all existing diesel vehicles, which will reduce the burden. I don't know how they can assume that adding tax to new vehicles will reduce subsidy bill, as already there are quite no. of diesel vehicles around.

OT : MoH may be objecting UID, but they are actively pushing NPR(which also can be used to target BPL directly), BTW,I really don't know what's the difference between UID & NPR.

Last edited by Vasuki : 14th June 2012 at 12:25.
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Old 14th June 2012, 12:28   #314
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Default Re: Govt plans to impose additional levies on diesel cars

Brilliant proposal that the govt is planning a 1.7-2.5 lakhs levy ! To right one wrong ( diesel pricing being not market driven ) , the govt is committing a more grievous sin .
  • If I am a car manufacturer why should I put in hundreds of million dollars in expanding capacity when govt policy is subjected to inane flip flops ?
  • Petrol @ 80 /ltr and diesel cars to have a "penal" levy of 1.7-2.5 lakhs so where does it leave car manufacturing as a sector ? Do we think that the penal duty on diesel will revive the demand for petrol cars ? I can't fathom the celebratory posts by some of the so called petrol heads here - look beyond YOUR car !
  • What about jobs lost or not created due the sector getting rammed either ways ? Can we as an economy afford it ? If one has any doubts about why we as a nation cannot afford a growth rate less than 7-7.5% with humongous job creation , you are requested to read the latest edition of Economist ( http://www.economist.com/node/21556576). With a manufacturing sector growth rate of 0.1% we are hobbling
This is a plain stupid policy if it gets activated , it will hurt all of us as a nation ( petrol heads / diesel hearts / cycle butts / pedestrian legs and what nots ) especially when we as a nation are likely to be downgraded into junk grade . The govt should stop fooling around and de-regulate diesel pricing - stepped approach if political compulsions are too great.

Last edited by souravc : 14th June 2012 at 12:52.
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Old 14th June 2012, 12:52   #315
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Default Re: Govt plans to impose additional levies on diesel cars

I dont know about the implementation of this levy, but just got a call from a Maruti SA stating that some levy on diesel cars is supposed to go up by 4% as early as next fortnight. They have been given this info only yesterday evening.

Again not sure if this is specific to city/ state or across India. He said this will increase the cost of a Swift vDi by upto 30K

I am going to a Fiat showroom in some time, so will try to get some more details and put it up here.
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