Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 14th June 2012, 12:53   #316
BHPian
 
Ranjimso's Avatar
 
Join Date: Aug 2009
Location: Bangalore
Posts: 116
Thanked: 19 Times
Default Re: Govt plans to impose additional levies on diesel cars

Does anyone have an idea when this can come to being? if it is going to be that is...My friend booked a i20 CRDI and he is worried if this is going to happen in another month or so and he is asked to wait a minimum of 6 weeks for delivery. If that's the case he does not feel it's worth to pay the addition 1 or 2 lacs for the i20 CRDI.
Ranjimso is offline   Reply With Quote
Old 14th June 2012, 13:08   #317
BHPian
 
Join Date: Dec 2006
Location: Bangalore
Posts: 409
Thanked: 109 Times
Default Re: Govt plans to impose additional levies on diesel cars

There are couple of things what government is trying hide from the picture

1. Mobile tower's power plant consumes diesel fuel next to Indian railways
2. The power generators in Malls, in MNCs which feed ACs are run by diesel
3. Many companies, providing air air-conditioned cabs/innovas, in place of Valvos or mass transport

These above segments does not required get subsidised diesel. If they can address the issue of subsidised diesel, most of the issues get addressed.
manjubp is offline   Reply With Quote
Old 14th June 2012, 13:11   #318
BHPian
 
jayded's Avatar
 
Join Date: Jan 2010
Location: TVM, HYD
Posts: 535
Thanked: 455 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by supremeBaleno View Post
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.
With the price disparity that exists now between the 2 kinds of fuel, I honestly do not see anything wrong in people going for diesel cars even if their monthly running is much less than 1K. And in my opinion it's wrong to assume that a first time buyer is bound to limit his usage to that of a petrol car isn't it? People apparently want to be on the safe side like how your suggestions in the above post has stayed clear of any kind of reform that would hurt "you" personally.
jayded is offline   Reply With Quote
Old 14th June 2012, 13:42   #319
Senior - BHPian
 
KiloAlpha's Avatar
 
Join Date: Mar 2010
Location: Cubicle
Posts: 1,255
Thanked: 1,442 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by manjubp View Post
There are couple of things what government is trying hide from the picture

1. Mobile tower's power plant consumes diesel fuel next to Indian railways
2. The power generators in Malls, in MNCs which feed ACs are run by diesel
3. Many companies, providing air air-conditioned cabs/innovas, in place of Valvos or mass transport

These above segments does not required get subsidised diesel. If they can address the issue of subsidised diesel, most of the issues get addressed.
For points 1 & 2, I would argue that the Government must virtually eliminate the need for such generators to be used by providing reliable electricity supply. Mobile towers are now part of essential infrastructure and so deserve it. As far as generators in offices/malls etc, they use them because they want to be in business!
The Government really is forcing everybody to invest in some sort of captive power generation. And, truth be told, this is worse for the environment than for the economy.
KiloAlpha is offline   Reply With Quote
Old 14th June 2012, 13:52   #320
BHPian
 
man_and_machine's Avatar
 
Join Date: Aug 2008
Location: Bangalore
Posts: 428
Thanked: 215 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by KiloAlpha View Post
And, truth be told, this is worse for the environment than for the economy.
Perfect! now that is something people lose focus when talking about economics. Collective power generation, transmission and consumption is better for the environment and economics. But then who will tell the guys in the power chairs? Not to forget that these machines (infrastructure connected Diesel generators) will not go to the pump to get Diesel filled, the Diesel has to come to them (transported to the machines), meaning burning more (subsidized) diesel time for fill up, unlike you filling diesel en-route to to work, economic and environmental impact, anyone?
man_and_machine is offline   Reply With Quote
Old 14th June 2012, 14:03   #321
Senior - BHPian
 
srishiva's Avatar
 
Join Date: Nov 2006
Location: Bengaluru
Posts: 3,580
Thanked: 823 Times
Default Re: Govt plans to impose additional levies on diesel cars

In our country, we are constantly trying to fix the symptoms and this is one of them. We have been like this forever and if its one thing today, it will be something else tomorrow.
srishiva is offline   Reply With Quote
Old 14th June 2012, 14:56   #322
Senior - BHPian
 
KarthikK's Avatar
 
Join Date: Nov 2009
Location: Bangalore
Posts: 1,918
Thanked: 3,495 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by selfdrive View Post
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.
thanks selfdrive, do find out more details about this and post for the benefit of us wannabe-dieselheads who have booked diesel cars and might potentially be affected by yet-another price hike.

I have booked for a Swift ZDi which is already costing 8.3L on road here now, and if there is an additional increase of 4%, it will touch 8.6-8.7L, which in my opinion is not worth paying for a Swift!
For that kind of moolah, I can as well go for a pre-owned Skoda Laura diesel!

what is this new 4% duty by the way? when people are all distracted by the main 1.8L penalty, the govt. silently slips in a 4% hike and thinks people won't notice?

Last edited by KarthikK : 14th June 2012 at 14:59.
KarthikK is offline   Reply With Quote
Old 14th June 2012, 15:04   #323
Distinguished - BHPian
 
supremeBaleno's Avatar
 
Join Date: Dec 2005
Location: Weekdays@Chennai, Weekends@Kerala
Posts: 5,164
Thanked: 1,638 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by jayded
People apparently want to be on the safe side like how your suggestions in the above post has stayed clear of any kind of reform that would hurt "you" personally.
Could you please clarify the underlined part ? I have a petrol-only garage and petrol anyway is priced as high as possible (not only compared to diesel, but also compared to pricing in other countries) - so not sure what reform needs to be done there?
supremeBaleno is offline   Reply With Quote
Old 14th June 2012, 15:08   #324
Senior - BHPian
 
ninjatalli's Avatar
 
Join Date: Jul 2011
Location: BOM
Posts: 1,606
Thanked: 1,177 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by manjubp View Post
There are couple of things what government is trying hide from the picture

1. Mobile tower's power plant consumes diesel fuel next to Indian railways

These above segments does not required get subsidised diesel. If they can address the issue of subsidised diesel, most of the issues get addressed.
Well not all is hush-hush. Someone is trying to make some noise about it! And of course the lobby tries to fight back!
The article's link

Quote:
Telcos oppose move to impose one-time tax on telecom towers using subsidised diesel

Telecom operators and tower companies today came out together to oppose TEMA's suggestion of levying a one-time tax on telecom towers for using subsidised diesel, saying it was "misleading, uncalled for, and devoid of any merit".
Telecom Equipment Manufacturers' Association of India (TEMA) had written to Prime Minister Manmohan Singh alleging that telecom towers were guzzling up to Rs 4,300-crore worth of subsidised diesel every year, which was meant for the rural poor, farmers and bulk transport systems.

"It is quite unfortunate that TEMA is trying to sensationalise the issue in a highly irresponsible and mischievous manner and the statements made by TEMA are misleading, uncalled for, and devoid of any merit," COAI, AUSPI and TAIPI said in a statement.
Cellular Operators Association of India (COAI) represents the GSM operators, while Association of Unified Telecom Service Providers of India (AUSPI) represents the interests of CDMA operators. Towers and Infrastructure Providers' Association (TAIPA) is a body of tower companies.
TEMA, on the other hand, represents telecom technology providers.
When contacted, TEMA Honorary Director-General Ashok K Aggarwal said the body had "stated true facts".
"The important question is whether companies should be allowed to use subsidies meant for poor people," he added.
TEMA said the levy of a one-time tax would create another source of finance for the exchequer and ensure that service operators and tower firms start adopting power-efficient infrastructure operating on greener source of energy much faster.
The groups representing telecom operators and tower fi said TEMA is "unnecessarily trying to imply that telecom operators pursue subsidies and profits relentlessly, which is not the case".
"On the contrary, the telecom industry recognises the importance of evolving cleaner alternatives to diesel and has started widely using solar panels and wind energy applications and continues to do so," it said.

Last edited by ninjatalli : 14th June 2012 at 15:12.
ninjatalli is offline   (1) Thanks Reply With Quote
Old 14th June 2012, 15:22   #325
Senior - BHPian
 
selfdrive's Avatar
 
Join Date: Apr 2010
Location: Pune
Posts: 2,700
Thanked: 2,119 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by KarthikK View Post
thanks selfdrive, do find out more details about this and post for the benefit of us wannabe-dieselheads who have booked diesel cars and might potentially be affected by yet-another price hike.
I checked this with the Maruti SA and he told me its going to be a 4% hike in excise duty (from 11% to 15% of ex showroom price). This is apparently all across India.
Though I know him enough that he called me voluntarily to give this info, I dont know how genuine this info is. It could also be a trick to convert prospective sales. In other words I trust the genuineness of this guy but dont really know how much to believe his higher ups.

Pandit Auto SAs know nothing about this. But at Pandit they have no real clue anyway or perhaps they will wake up a bit late as usual. I mean the higherups at Tata/ Fiat. No point blaming the SAs for everything!

To be a bit blunt, I dont see the point in buying a Swift for that much during this state of the economy. But thats just me. A person who has a big enough home loan not be able to buy a new car. Or anything else for that matter

Isnt this a bit like playing the fool with a small kid? Show a big toy and slip in a spoonful of medicine. Similarly show a big 2L worth of levy and slip in a 4% of excise.

Last edited by selfdrive : 14th June 2012 at 15:47.
selfdrive is offline   (1) Thanks Reply With Quote
Old 14th June 2012, 15:23   #326
BHPian
 
samarjitdhar's Avatar
 
Join Date: Nov 2011
Location: Sydney/Kolkata
Posts: 964
Thanked: 476 Times
Default Re: Govt plans to impose additional levies on diesel cars

This No extra tax on diesel cars without nodal ministry's nod: SIAM - The Economic Times should now put this debate to rest. The heavy industries as well as the finance ministry would be scared to death if IIP nos. start falling south in the negative territory which will definitely happen if this kind of a tax is put on diesel vehicles. What will follow is massive job losses not only with the car manufacturers but even the vendors and ancillary units. Something this government doesn't want to face at any cost given the presidential election cyclone started yesterday. Add the smackdown administered by the S&P and a potential failure of monsoons which looks more than likely this year any Ram/Shyam/Bunty/Bubli/Suresh/Ramesh can win elections against this current government.

Till Jaipal Reddy gets excited again and utters more nonsensical stuff, this thread would grow cold again.

Last edited by samarjitdhar : 14th June 2012 at 15:29.
samarjitdhar is offline   (1) Thanks Reply With Quote
Old 14th June 2012, 15:33   #327
Senior - BHPian
 
lurker's Avatar
 
Join Date: Jun 2006
Location: Tura
Posts: 1,308
Thanked: 641 Times
Default Re: Govt plans to impose additional levies on diesel cars

Just wait until some media person raises this question again to the same person at the next price rise. The same circular debate shall start again and once more diesel cars will register record booking and Tata/Mahindra laugh all the way to the bank.
lurker is offline   Reply With Quote
Old 14th June 2012, 17:15   #328
Newbie
 
Join Date: Nov 2007
Location: Mumbai
Posts: 16
Thanked: 7 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by samarjitdhar View Post
This No extra tax on diesel cars without nodal ministry's nod: SIAM - The Economic Times should now put this debate to rest. The heavy industries as well as the finance ministry would be scared to death if IIP nos. start falling south in the negative territory which will definitely happen if this kind of a tax is put on diesel vehicles. What will follow is massive job losses not only with the car manufacturers but even the vendors and ancillary units. Something this government doesn't want to face at any cost given the presidential election cyclone started yesterday. Add the smackdown administered by the S&P and a potential failure of monsoons which looks more than likely this year any Ram/Shyam/Bunty/Bubli/Suresh/Ramesh can win elections against this current government.

Till Jaipal Reddy gets excited again and utters more nonsensical stuff, this thread would grow cold again.
Thanks for this piece of news! I just booked the XUV W8 last week and was shocked to hear the 2.5 lac increase news from my office collegue today! Was seriously contemplating cancelling my booking, keeping my fingers crossed now..
goarules is offline   Reply With Quote
Old 14th June 2012, 17:31   #329
Senior - BHPian
 
selfdrive's Avatar
 
Join Date: Apr 2010
Location: Pune
Posts: 2,700
Thanked: 2,119 Times
Default Re: Govt plans to impose additional levies on diesel cars

Quote:
Originally Posted by goarules View Post
Thanks for this piece of news! I just booked the XUV W8 last week and was shocked to hear the 2.5 lac increase news from my office collegue today! Was seriously contemplating cancelling my booking, keeping my fingers crossed now..
I wish you well.
Please do check with your SA if there will be a hike of 4% in excise (hikes are on the cards for diesels only). I am not sure of the delivery timelines for the XUV, but this could be a possibility in the next fortnight. And 4% is quite a bit.
Do see my previous posts for more details.

Last edited by selfdrive : 14th June 2012 at 17:32.
selfdrive is offline   (1) Thanks Reply With Quote
Old 14th June 2012, 20:22   #330
Senior - BHPian
 
mail4ajo's Avatar
 
Join Date: Mar 2006
Location: San Antonio, TX
Posts: 1,834
Thanked: 222 Times
Default Re: Govt plans to impose additional levies on diesel cars

I hope they can make this simple. Luxury cars should be taxed and cars below a certain cost should be spared.

A person who can afford a high luxury car can certainly afford expensive fuel and also a few lakhs more as excise too. Why should they get subsidized fuel meant to run the country? It doesnt make any sense. Most high end cars are only coming in diesel today. Petrol is an option while it was vice versa a few years ago.

By paying higher excise on diesel cars, the rich can help to reduce the petrol prices. Note: I am not anti-rich. Dont flame me for this.
mail4ajo is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Govt plans 10 kms road to Land's End at Dhanushkodi gabrielthomas Street Experiences 13 9th January 2017 15:04
Govt plans incentives for surrender of old vehicles saket77 The Indian Car Scene 66 19th December 2016 12:57
Rumour: Mahindra shrinking the Bolero for lower levies a4anurag The Indian Car Scene 5 29th March 2016 09:29
Kerala to impose additional tax on the 2nd car of a family! kutts The Indian Car Scene 99 3rd November 2013 12:19
Govt plans amendment to Motor Vehicles Act - To task automakers for lemons SR-71 The Indian Car Scene 23 8th September 2011 18:59


All times are GMT +5.5. The time now is 17:36.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks