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Old 26th October 2013, 15:22   #16
King_K's Avatar
Join Date: May 2012
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Originally Posted by Jignesh View Post
Points to ponder on:

1. Does the transport department really thinks that Rs. 5 / 10 increase on fuel prices will stop people from using their cars? If that was true, the recent hikes in prices of petrol & diesel prices should have definitely reduced traffic burden on Mumbai roads.

2. A large number of car buyers register their cars outside Mumbai, how will authorities keep a track of these cars?

3. I feel rather than improving the road infrastructure, authorities are just trying to burden the common man with additional taxes.

4. What about cars of private organizatons? I mean ay if a company is registering 50 cars in its name, how will the additional vehicle tax be charged.

There are obviously more questions than answers at this stage, but the real problem lies in the road infrastructure in Mumbai. With an additional revenue source specifically earmarked for infrastructure development, there is hope for better road transport.

The additional tax and cess aren't aimed at reducing the usage or purchase of cars, but to generate 400-800 cr worth of annual revenues which will be exclusively utilized to redevelop Mumbai's roads. The money won't go into a general pool is what the proposal says.

Having additional taxes for second cars is not an uncommon policy in the Western world. It already exists in our neigbouring state Andhra Pradesh - second car buyers pay 2 times more road tax than first car buyers. Car buyers in Karnataka pay 15.4% road tax whereas Mumbaiites pay 9-11% only.

I am equally cynical about whether the additional money collected will be properly utilized. But that is what the enlightened citizens like us are supposed to do - stay awake, file RTI applications, support NGOs that monitor funds usage and fight for our rights.
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