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Old 25th October 2013, 14:57   #1
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Default Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Hello All,

I came across an interesting piece of news today morning:

Transport Commisioner Mr. V N More & team has submitted a proposal to charge a fixed cess of Rs. 5 or Rs. 10 per liter of Petrol & Diesel. They have also proposed additional Vehicle tax to be charged to buyer of second car.

The fund so collected will be used exclusively to strengthen the urban transport infrastructure in the Mumbai region. For example they have suggested to give the money to BEST for purchase of new Buses & improvement of its services.

The Cess amount works out to Rs. 200 crores for cess of Rs. 5 & Rs. 400 crore for cess of Rs. 10.

The proposal has been submitted to Government & no final decision has been taken.

Source: http://timesofindia.indiatimes.com/c...w/24688624.cms

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.

Thanks,

Last edited by Jignesh : 25th October 2013 at 14:58.
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Old 25th October 2013, 14:59   #2
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Default re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

So, its MH after KA which comes up with such ideas. Duh!

Related Thread (Kerala to impose additional tax on the 2nd car of a family!)

Last edited by GTO : 26th October 2013 at 15:36. Reason: Adding link to the related thread you speak of. Thanks
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Old 25th October 2013, 15:12   #3
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Default re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Very frankly, this idea can not be implemented, thankfully though. As I say on all other threads, reliable public transport will solve a lot of problems. People will not buy multiple cars and even if they, will not take out cars often. This piece of news is nothing but sensationalism and coming from TOI-let paper, I will take it with a table spoon of salt.
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Old 25th October 2013, 15:22   #4
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Default re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

It is really amazing that how the Govt. keeps on finding new & innovative ways to kill the common man by overburdening. Hats off!

They surely have no brains to understand that:
1. A lot of people depend on two wheelers for regular commute too, either because they are not able to afford a car, or even if many have cars, they might not afford to spend a lot on fuel which is atrociously priced here- thanks to the illogical system of multiple taxation.

2. Cars not only can be registered outside Mumbai, but also to name to other family members

3. Delhi got their own metro rail system without any of such idiotics. Why not Mumbai develop such efficient transport system? Sure, its under construction, the aim should be such that its convenient and people can actually shift from cars to the metro. Apart from convenience, who will guarantee the safety of people, esp ladies in a public transport system? Remember Delhi, 16th Dec?

4. Talking ethically, why should a car owner pay for developing the public transport when he is paying income taxes, road, registration & toll taxes apart from taxes on fuel? Apart from this, every item one buys for everyday day has tax, one pays taxes while eating in a restaurant, watching a movie & heck, we even pay tolls for cratered roads; Where does this money go?

5. Ministers will still move with their unnecessary conveys and waste lot of manpower & fuel...& we pay the bills.

6. What happens to the already reeling auto sector ....& banking sector related to auto loan?

7. What's next? Tax on air we breathe? Rest assured, like most instances, this money is never going to reach the purpose; end of rant.

Last edited by saket77 : 25th October 2013 at 15:24.
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Old 25th October 2013, 15:48   #5
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Default re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

I just want to say that it is a crime to be born as a middle class bloke in India. I am not against the idea in principle but when nothing is being done to retrieve thousands of crores of black money is stashed abroad, when nothing is being done about crony capitalism, when toll is being collected on roads which are far from complete, when the public transportation system is still not up to scratch, they find the most vulnerable and easily accessible bloke to exploit.

Last edited by needforspeed88 : 25th October 2013 at 15:49.
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Old 25th October 2013, 16:06   #6
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Default re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

What I am sure of is that even if they introduce this, the condition of the public transport is going to stay the same. Its not like the Govt has any less funds right now. They just put those funds into things which gets them votes. Introducing more buses in a metro city doesn't help that cause.
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Old 25th October 2013, 16:10   #7
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Default re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Quote:
Originally Posted by saket77 View Post
What's next? Tax on air we breathe? Rest assured, like most instances, this money is never going to reach the purpose
Hello Saket,

Interesting point. Infact couple of years back BMC (Brihanmumbai Municipal Corporation) came very close to that. Sometime in 2001 they planned to earn Rs. 60 crores by imposing Octroi on Water & Electricity. The logic behind this was as Water & Electricity is supplied from outside Mumbai, they are supposed to levy Octroi. But luckily the proposal was strongly opposed & stalled. (Source: http://www.mid-day.com/news/2001/mar/8352.htm).

Anyways coming back to discussion on fixed cess on Petrol / Deisel, you made a very valid point - What about Two-Wheelers? Will they too have to pay cess on Petrol? Also what if a person owns one four wheeler & one two wheeler?

Thanks,
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Old 25th October 2013, 16:49   #8
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Quote:
Originally Posted by Jignesh View Post
Hello Saket,

Interesting point. Infact couple of years back BMC (Brihanmumbai Municipal Corporation) came very close to that. Sometime in 2001 they planned to earn Rs. 60 crores by imposing Octroi on Water & Electricity. The logic behind this was as Water & Electricity is supplied from outside Mumbai, they are supposed to levy Octroi. But luckily the proposal was strongly opposed & stalled. (Source: http://www.mid-day.com/news/2001/mar/8352.htm).

Anyways coming back to discussion on fixed cess on Petrol / Deisel, you made a very valid point - What about Two-Wheelers? Will they too have to pay cess on Petrol? Also what if a person owns one four wheeler & one two wheeler?

Thanks,
Hello Jignesh,

Its highly unlikely that the two wheelers will be exempt (if in case the new 'farmaan' comes into effect). It's strange that the Govt., rather than addressing the root cause of the problem, targets the wrong area to control fuel consumption, volume of traffic on roads, etc. I will not go into the pricing of fuel in our country, but it has been discussed in length at another thread on TBHP. The Govt. is clueless about how to handle the falling INR and even the prices of food items, hence, as someone above said too, its easy to exploit the common middle class man who shall pay for everything from his pocket, be it the consequences of incompetent policies of the Govt. or when it comes to 'finance' the next set of scams & corruption. The Govt. turns a deaf ear to the fact that how the common middle class man is meeting his ends where even staples like vegetables are as expensive as a jwellery?

It would have been unlikely that the Govt. would have thought that even if they cut the corruption by 28-30%, there could have been a massive difference. But these stories would remain tied with the words like 'would' & 'could'.

Is it really that Govt. does not have any money to introduce good buses for BEST? And they expect a person to take the crap transport system for office everyday? Why don't the Govt officials use them? Let alone the officials, the cars provided to them are even used by their families and extended families too.

The situation is like putting additional 'cess' on food if you consume more than 2 chapatis and more than one type of vegetable per meal...to control food consumption so as to enable the food security bill....who knows?

Or are we expected to travel cattle class and live n die like one?

PS: I might have gone OT with this post a little, but the situation is so grim that I feel like we are not living in a democracy, but under rule of some autocratic King.

Last edited by saket77 : 25th October 2013 at 16:55.
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Old 25th October 2013, 17:42   #9
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

With election round the corner, I don't think any Government will like to take that kind of step. The proposal defies the logic when a car can be registered in family member's name. Also if this cess is for 4 wheelers then will petrol pump maintain separate log for petrol sales to 2 wheeler and 4 wheelers?
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Old 25th October 2013, 18:26   #10
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Quote:
Originally Posted by Jignesh View Post
Hello All,
The fund so collected will be used exclusively to strengthen the urban transport infrastructure in the Mumbai region. For example they have suggested to give the money to BEST for purchase of new Buses & improvement of its services.
Thanks,
It is a ridiculous plan. Charging additional 2 % for a second four - wheeler in the family ( already being implemented in AP) may be justified but levying a cess of Rs.5 or Rs.10 ( as if the fuel prices are at rock-bottom levels) is typical of high-handed and unrealistic attitude of our bureaucrats.

What are the governments doing with the already high levels of taxes collected from the sale of petrol and diesel?

And if they are so much interested in improving the public transport, they should levy an additional 50 paise or so on ticket prices of the transport services which would net them the required money to invest in better public transport facilities.

It reminds me of the campaign The Hindu ran a few days ago under the tag 'Behave Yourself India. The Youth Are Watching : 'Dear Mr. Politician, How come rising fuel prices worry single car owners and not someone with a 20 car convoy?'
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Old 25th October 2013, 19:51   #11
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Angry Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Seriously, what else can you expect from a team who want PHD degrees without studying.

I guess the team never came out of their AC comfort cabins to check the ground realities. The tax structure on the fuels are already the highest in the country, any additional cost would make people walk on the streets to work and by this way there would be no space for vehicles to move which will bring down the usage of pvt vehicles. Thats what the govt is aiming for isnt it.

The team needs to be examined by another team of professional doctors.
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Old 25th October 2013, 20:23   #12
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

We already pay close to 50% as taxes on every liter of fuel purchased. Another additional levy in the form of cess is sheer idiocracy. It has become a norm to tax the commoners for all the inefficiencies of our corrupt bureaucrats.

Quote:
Originally Posted by simplyself View Post
...It reminds me of the campaign The Hindu ran a few days ago under the tag 'Behave Yourself India. The Youth Are Watching : 'Dear Mr. Politician, How come rising fuel prices worry single car owners and not someone with a 20 car convoy?'
There you go!

Name:  thehinduhoardingconvoy102496963.jpg
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Last edited by Warwithwheels : 25th October 2013 at 20:24.
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Old 26th October 2013, 11:10   #13
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

This new cess and additional tax on 2nd vehicle sounds disgusting and depressing at same time. God save India from this mindless policies which reminds me only of some insane ruler called tughlak
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Old 26th October 2013, 13:07   #14
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Default Re: Mumbai: New cess on Petrol & Diesel, and additional tax on 2nd vehicle

Having dealt with the BMC - every department there is corrupt to the core. They have not even implemented a simple policy of FIFO - First In, First Out for applications made. For everything a palm must be greased. Whoever came up with this gem must be high. How about reimbursing the car owners for all their worn and broken shock absorbers?
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Old 26th October 2013, 13:17   #15
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The govt and the officials think they are our mai baap and there wish should be our commend. That live in a isolated world and don't face the ground realities until a election is on its way. Then again they get customised caravan with half a dozen spare vehicles.

It's this attitude that gonna cost then soon. People are raising, the temper and tolerance had been tested...this kind of autocratic style of democracy won't work. It's very likely this proposal would be thrown into trash can by the policy makers not because it's crazy but due to coming elections.

It's only after election that they will start imposing ludicrous bills. Why we ask, simple because they have to get their election fund investment back. And it's sapped through our hard earned money over the period of their 5 years tenure.
I guess I went slightly ot but to be honest the cess in petrol is just beyond craziness. I do support the second car rule only if it's imposed uniformly and makes sense.
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