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


Reply
 
Thread Tools Search this Thread
Old 24th January 2012, 22:11   #106
BHPian
 
Join Date: Jan 2012
Location: Chennai
Posts: 61
Thanked: 6 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Quote:
Originally Posted by libranof1987 View Post
Inevitability strikes. It will take a while though for it to fully deregulate.
Relativity is offline   Reply With Quote
Old 26th January 2012, 10:07   #107
Distinguished - BHPian
 
RavenAvi's Avatar
 
Join Date: Jun 2011
Location: Flying Around
Posts: 5,373
Thanked: 28,315 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Source - rediff.

Quote:
The Centre for Science and Environment has demanded an additional duty of up to Rs 162,000 on big diesel cars to prevent the misuse of subsidised fuel for luxury.
While blaming the government for its inaction over the issue, the NGO also hit out at the auto industry body Society of Indian Automobile Manufacturers (SIAM) and vehicle makers for "propagating false information" about diesel technology and amount of the fuel consumed by cars and personal vehicles.

"Any car is a luxury. A car owner should not enjoy any subsidy. There should be additional duty on diesel cars to equalise the subsidy benefits given on diesel and petrol," CSE Executive Director (Research and Advocacy) and Head (Air Pollution and Urban Mobility) Anumita Roychowdhury said.
She said the recommendations of the Planning Commission's Kirit Parikh Committee of an additional Rs 81,000 equaliser excise tax for small cars with engines of less than 1,400 cc should be implemented in the Budget for 2012-13.
"This amount should be doubled for bigger cars for equitable sharing of burden," she added. Urging to implement the proposal, CSE has already submitted a memorandum to the Finance Ministry, she said.

Stressing that consumers should be given equal excise benefit, Roychowdhury said: "Government is responsible for taxation and pricing. It has to equalise the prices. If it can not correct it immediately, then additional policy steps must be taken to prevent misuse of diesel for luxury.
"With each litre of petrol replaced by diesel to run a car, the excise earnings of the government drop seven times. The effect of increased use of diesel in cars is so dramatic that the excise earnings from both diesel and petrol has nearly equalled."

According to CSE researchers, if the new diesel car fleet were to pay the same excise as that of petrol cars while purchasing the fuel, the potential excise revenue can be Rs 1,00,000 crore from the lifetime fuel use of the new car fleet to be sold between 2009 and 2015, she claimed.

"The government is responsible for this disparity and the shift towards more demand for diesel vehicles for personal usage," Roychowdhury said.
Details - Own a big diesel car? You may be TAXED more! - Rediff.com Business
RavenAvi is offline   Reply With Quote
Old 26th January 2012, 16:57   #108
BHPian
 
MalluDude's Avatar
 
Join Date: Aug 2005
Location: Cochin
Posts: 382
Thanked: 28 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

So it's going to be official.

Finance Ministry for higher excise duty on diesel cars
MalluDude is offline   Reply With Quote
Old 26th January 2012, 17:07   #109
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,480
Thanked: 3,625 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Why don't they go ahead and just ban the sales of diesel vehicles? Let diesel engines be there only in Trucks or rather introduce that too with CNG engines.

After this move the sales of diesel cars in the Used car market will surely fetch a premium.
drmohitg is offline   Reply With Quote
Old 26th January 2012, 21:30   #110
BHPian
 
Join Date: Aug 2011
Location: Nasik / Mumbai
Posts: 427
Thanked: 592 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

So you are actually allowed to use diesel to earn a profit (transport sector) but it is bad if general public use it for personal transportation. Before taking any such useless decisions, the least they can do is improve the distribution network for CNG so that general public at least have a choice to use 'safer' mode of transport than a 2-wheeler. That will be much more effective in stopping the 'dieseling' of the car market than these loot tactics.
antz.bin is offline   (1) Thanks Reply With Quote
Old 26th January 2012, 21:57   #111
BHPian
 
SunilM's Avatar
 
Join Date: Jan 2010
Location: Ahmedabad
Posts: 272
Thanked: 39 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Quote:
Originally Posted by MalluDude View Post
Now it is news to me. I always thought Diesel is still sold at a profit, just that the government taxes it less and hence cheaper. But it seems Diesel is indeed sold at a loss.

A quote from above article "The diesel price of Rs 40 a litre in Delhi is Rs 14.57 lower than its imported cost.
Diesel is the most consumed fuel in the country but is sold at a discount to its imported cost. The current diesel subsidy is Rs 14.57 per litre and on an annualised basis, this amounts to Rs 82,000 crore out of the total fuel subsidy, estimated at Rs 136,936 crore in the current fiscal.
"
SunilM is offline   Reply With Quote
Old 26th January 2012, 22:04   #112
Senior - BHPian
 
Join Date: Apr 2010
Location: EU - Nordic
Posts: 1,563
Thanked: 953 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

I guess the extra duty will be as a percentage of the car price. What prevents the manufacturers from dropping their diesel prices a little bit to balance out a portion of the proposed price hike?

For eg: one of the biggest advantages VW Vento has over the Honda City is the diesel option. Diesel cars accounts for large majority of Vento sales. There's no gurantee anyway that everyone choosing not to buy the diesel Vento due to the price hike, will automatically buy a petrol Vento. Now if the govt tries to tax the diesel Vento out of the market, how will VW react?
StarrySky is offline   (1) Thanks Reply With Quote
Old 28th January 2012, 15:15   #113
rmk
BHPian
 
rmk's Avatar
 
Join Date: Feb 2011
Location: Kannur
Posts: 53
Thanked: 10 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

there is news about that in our newspaper also. will they implement this starting this april? i was about to book a swift dzire diesel today, when swuftnfurious adviced me to consider some other option that'd be delivered before april.
any suggestion friends???
rmk is offline   Reply With Quote
Old 28th January 2012, 16:19   #114
Senior - BHPian
 
scopriobharath's Avatar
 
Join Date: Nov 2007
Location: Chennai
Posts: 3,565
Thanked: 1,175 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Quote:
Originally Posted by rmk View Post
there is news about that in our newspaper also. will they implement this starting this april? i was about to book a swift dzire diesel today, when swuftnfurious adviced me to consider some other option that'd be delivered before april.
any suggestion friends???
Govt Will for sure bring in a tax on diesel Motors. And trust me it will be not be 80,000/- but a percentage of the Ex-show, which will work out to be 80,000 for a hatch/sedan. Govt will not leave even one "luxury" for the common man.

I am happy that at least there is no tax for breathing or walking.

80,000/- increase for a Toyota LC200 aspirant is peanuts, whereas 80,000/- increase for a Beat basic model owner is a real pocket-pincher.

My advice is same. go in for a model before april and ensure you get the registration done before april 1st.
scopriobharath is online now   Reply With Quote
Old 28th January 2012, 16:28   #115
BHPian
 
devil_klm's Avatar
 
Join Date: Jan 2010
Location: Bangalore
Posts: 407
Thanked: 186 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Better stay away from any of maruti cars. Even hyundai has the waiting periods similar to maruti i think. Only car which can be getting within promised time is punto i think. Obviously due to poor demand. And petrol cars demand may increase marginally if they green tax rule is implimented
devil_klm is offline   Reply With Quote
Old 28th January 2012, 17:12   #116
BHPian
 
DevilsCry's Avatar
 
Join Date: Sep 2011
Location: Delhi
Posts: 557
Thanked: 503 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Quote:
Originally Posted by rmk View Post
i was about to book a swift dzire diesel today, when swuftnfurious adviced me to consider some other option that'd be delivered before april.
any suggestion friends???
Swiftnfurious is partially correct. One of the following two things are most probably going to happen by April-
1. Diesel car prices hiked by 80k.
2. Diesel price deregulated. From seeing prices in Pakistan, diesel is going to be almost as costly as petrol if deregulation happens.

Even if you get your DZire before April, price deregulation will hit you badly if implemented. In my opinion, if you can wait, do wait till April. Better wait than be sorry.
DevilsCry is offline   Reply With Quote
Old 28th January 2012, 17:20   #117
Senior - BHPian
 
shashank.nk's Avatar
 
Join Date: Jan 2010
Location: Bangalore
Posts: 1,520
Thanked: 732 Times
Default

I don't think any government will risk deregulation of diesel prices. In our country its not about if it will benefit the people,it's all about will it benefit the party and get us back to power.

If the current govt deregulates diesel prices they're never going to be voted back to power.

However, the duty on diesel cars MAY be increased this budget. It should be a certain % on the ex showroom price and the more u have to spend the more tax you pay the govt.

In the current scenario its better to buy right now if possible. It makes no sense to wait and pay taxes later if imposed.
shashank.nk is offline   Reply With Quote
Old 28th January 2012, 18:47   #118
Distinguished - BHPian
 
swiftnfurious's Avatar
 
Join Date: Sep 2009
Location: Chennai
Posts: 6,449
Thanked: 6,438 Times
Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

Quote:
Originally Posted by DevilsCry View Post
2. Diesel price deregulated. From seeing prices in Pakistan, diesel is going to be almost as costly as petrol if deregulation happens.
The chances as I see is very very minimal! If the government implements it, I can't imagine the kind of inflation we will face. This will straight away hit the public transportation sector which will make sure all the daily required goods prices go thru the roof making the life of common man nothing short of a night mare. On the other hand, if they introduce taxes on private vehicles, it would NOT create the kind of chaos that will happen with de-regulation. Lets all accept that private vehicles [especially cars] are more of a luxury than a necessity! So the trick is to target those with minimal impact to the whole population.
swiftnfurious is offline   (1) Thanks Reply With Quote
Old 28th January 2012, 19:08   #119
BHPian
 
one-77's Avatar
 
Join Date: Oct 2010
Location: KL08/MH01
Posts: 358
Thanked: 198 Times
Default

Quote:
Originally Posted by swiftnfurious
So the trick is to target those with minimal impact to the whole population.
It's more about targeting those with the minimum impact on the votebank.
But the automobile manufacturer lobby would not let it happen that easily. Diesels are cash cows for ALL manufacturers, and Tata and Mahindra will be among the worst hit if the additional tax is imposed.
one-77 is offline   Reply With Quote
Old 28th January 2012, 19:12   #120
BHPian
 
Turbokick's Avatar
 
Join Date: Nov 2011
Location: Bhubaneswar
Posts: 512
Thanked: 237 Times
Default

Quote:
Originally Posted by swiftnfurious View Post
The chances as I see is very very minimal! If the government implements it, I can't imagine the kind of inflation we will face. This will straight away hit the public transportation sector which will make sure all the daily required goods prices go thru the roof making the life of common man nothing short of a night mare. On the other hand, if they introduce taxes on private vehicles, it would NOT create the kind of chaos that will happen with de-regulation. Lets all accept that private vehicles [especially cars] are more of a luxury than a necessity! So the trick is to target those with minimal impact to the whole population.
I exactly agree to this point and a very small part of our population will be complaining the taxing of diesel cars when compared to if diesel is deregulated.

But my worry is for the vehicles that are used as taxi and private rental transportation like some hatchbacks like indica,sedans like indigo CS and MUVs like bolero and tavera.

So the taxi market might get badly affected as the initial expenditure will go for a toss.
Turbokick is offline   (1) Thanks 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