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Old 1st August 2014, 10:52   #76
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

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Originally Posted by FanaticOnWheels View Post
This is a brilliant initiative.Point number 2 is 100% true. Most of the traffic at toll plazas is caused by private vehicles. This would definitely be a welcome move.

Also, I don't think people would pay toll equivalent to 2% of their car's ex showroom value (the average car owner), so this move should bring in more revenue than the 14% revenue share that is currently being brought in by private cars.


This is a preposterous idea!

Why? Because (1) while it is labelled as toll tax, it will be collected from new car owners who may not use the toll roads and even if they use such collection will always remain disproportionate. (2) It ignores those those who already have a car or decide to buy second or third hand. (3) This move will not solve the problem of congestion. Whether volume of cars on roads decreases or increases if this is implemented is a debatable matter.

In a country of 1.2 billion where only 400,000 people pay the chunk of income tax which only accounts for 15% of the government's sources of funds, the need of the hour is to create jobs, provide opportunities and widen the income tax net and not impose additional taxes. For example, instead of spending 200 crores on a huge metal statue, this could have been spent in implementing RFID based toll collection and speed limit control at major toll roads in the country - saving money and saving lives. All this requires consensus building, allocating funds by prioritizing needs and real efforts to implement successfully. But the shortcut of imposing additional tax burden on the common man is always easier and more alluring. Unfortunately the decision makers are far removed from people's expectations and ground realities, nevermind that they are short sighted and are always looking for shortcuts to raise money with zero accountability. Fortunately there is rising consciousness and widespread expression of angst against such poorly thought out schemes.

I suspect, the current government which has come in on a "development" plank is obviously looking at ways to raise money to fund its plans. I believe bureaucrats are under pressure to come up with solutions to an apparent fund crunch, and one of them is likely to have come up with this idea. The fact that this is doing rounds in the media can only mean that the government is actually considering this seriously!

Finally there will always be some rich people who think of an additional 2% tax as a non-issue but for the average citizen who works hard and earns his/her livelihood in India and pays extremely high duties and higher than international prices for fuels this will always be a big deal.

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Old 1st August 2014, 17:59   #77
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

I support the idea of either collecting one time 2% charge or increase in petrol cess. Private vehicles likes small cars do not cause harm to the road whereas heavy vehicles like truck, tempo which are often loaded beyond capacity, cause road damage.

Daily office going crowd will benefit from it because it will save their precious time of waiting at the toll booth. Other than office goers, most of the private cars are out on weekends so they will save time rather than waiting in long queue to just step outside the city.

If private cars are going to be excluded then it must be implemented on every toll booth and not just NHAI toll booths.
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Old 1st August 2014, 18:32   #78
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

I suggest the following:

1. Only sell cars higher then 20 lakhs OTR

2. This would allow others to use public transport & improve road safety

3. Roads will have less traffic and those buying expensive cars can enjoy them

4. Toll booths will have less cars to deal with, this would result in much more efficient toll collection

5. Reduce excise duty on imports so that people can enjoy luxury cars, both that get to drive & those who get to watch

6. Those who can't afford a car in new regime can at least get their pictures taken next to high end luxury cars. Everyone is happy.

7. This would also improve traffic safety.
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Old 1st August 2014, 21:01   #79
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

Additional road tax only from New car buyers? So the one who purchased a day before this rule comes into enforcement can enjoy a toll free journey for next 15 years? This is irrational.

On the other hand, if this rule is enforced right now and withdrawn a year later, will the government refund the excess amount paid by new car buyers in that particular period?
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Old 3rd August 2014, 09:37   #80
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Originally Posted by aseem View Post
I suggest the following:

1. Only sell cars higher then 20 lakhs OTR

2. This would allow others to use public transport & improve road safety
.
TOTAL NO NO! build strong public transportation systems first!
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Old 3rd August 2014, 10:10   #81
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

I second the government proposal of no toll for private vehicles. I reason that it would also help in lessening to some extent the menace of 'VIP' culture on these booths and reduction in rage with the attendants.

The method is debatable though in my opinion since car owners already pay for the road tax. What is the accountability for that?

Further, the excess levy will not go unaccounted is also questionable when the corruption is unabated.

When we can such good roads here in US without tolls,there is no reason that cannot happen in India.

Lastly, public transport system needs expansion and augmentation with last mile connectivity.The state of Delhi Metro, jam-packed at most hours force many to take to roads. We need more of such efficient systems in place which can offer decent ride and not a harrowing time to commuters. The socioeconomic paradigm of this means is also inherent in the fact that our hinterland needs to be developed well so as to let the majority find good employment and business opportunities there itself and don't have to clog the cities for mere basic needs of a job.
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Old 3rd August 2014, 10:59   #82
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

On second thoughts, this move is okay, looking at it from the practical angle. An additional 2% road tax would have kicked in at some point in near future anyway, for whatever reasons the government can find or sometimes even without a reason. Just look at how the road tax rates or fuel surcharges have been on a rise year after year, every time budget is presented in some of the states like Kerala.

Most of the southern states use the road tax as one of the means to bridge the fiscal deficit due to other schemes that they put in place with zero vision, which is why tax rates have reached close to 20% in some cases with negligible improvement in the road infrastructure to justify that revenue. So the 2% road tax going into toll-replacement fund is better than the same going into the state treasury to fund the salaries of the redundant government employees with zero productivity or other expenses that are even more frivolous.
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Old 3rd August 2014, 15:56   #83
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

I do not think this is practical. The chap has taken the franchise on the BOT or BOOT model, so the moolah has to go to him and not into the road tax. Only the govt (Centre and/or state) gets a cut. Only the law that there has to be 80km (or is it 50) between booths must be enforced.
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Old 4th August 2014, 07:52   #84
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

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Originally Posted by zenren View Post
Most of the southern states use the road tax as one of the means to bridge the fiscal deficit due to other schemes that they put in place with zero vision, which is why tax rates have reached close to 20% in some cases with negligible improvement in the road infrastructure to justify that revenue. So the 2% road tax going into toll-replacement fund is better than the same going into the state treasury to fund the salaries of the redundant government employees with zero productivity or other expenses that are even more frivolous.
In that case, these states will never feel the need to remove such redundant staff with zero productivity as long as there are people who are willing to fund it by means of additional tax. To pay additional money for no goods or services or facilities is akin to making a donation, in my opinion. The way to control deficit is not just by raising taxes but also by learning to spend within means. I am surprised that instead of raising questions about an already high rate of road tax, there are people who are willing to pay more!

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Old 5th August 2014, 04:53   #85
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

My singular complaint is - Why should I subsidize somebody else? My lower usage (or no usage) on an expensive car should not be used for higher usage on a lower priced car.

Am not sure if this was mentioned earlier - but will this mean that there will be no toll whatsoever? ever? or will it be selectively applicable based on age of the car to be proven by showing RC book at the toll station?
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Old 5th August 2014, 10:14   #86
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

Even if they wish to do this, there should be a fixed Rs 20,000/- additional and not a % . All LMVs should be charged the same.

Today a Rolls-Royce and Alto pay the same toll. Why should Rolls-Royce pay more?

Note: I have a santro and not a high-end car.
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Old 5th August 2014, 10:58   #87
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

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Originally Posted by scopriobharath View Post
Even if they wish to do this, there should be a fixed Rs 20,000/- additional and not a % . All LMVs should be charged the same.

Today a Rolls-Royce and Alto pay the same toll. Why should Rolls-Royce pay more?

Note: I have a santro and not a high-end car.
20000 additional irrespective of the car means roughly 10% of vehicle cost for a Nano buyer. That is more than the current road tax for Nano in some of the states.
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Old 5th August 2014, 11:03   #88
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

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Originally Posted by zenren View Post
20000 additional irrespective of the car means roughly 10% of vehicle cost for a Nano buyer. That is more than the current road tax for Nano in some of the states.
Totally Agree - But Nano pays the same toll as a Rolls-Royce today.

The toll charges on the Rajiv Gandhi sea link in Mumbai is 55, be it a Rolls royce or a Nano.

I put an average of Rs 50/- per toll X 800 passes (400 round trips) = Rs 20,000/-. 400 round trips is very much a good number and also there are so many vehicles which are NOT used for long drives.
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Old 5th August 2014, 14:53   #89
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

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Originally Posted by scopriobharath View Post
Totally Agree - But Nano pays the same toll as a Rolls-Royce today.

The toll charges on the Rajiv Gandhi sea link in Mumbai is 55, be it a Rolls royce or a Nano.
Everything in Mumbai is Area based.

I think the toll-charges should be on Road Area occupied basis.

This will take care of uniformity.
But HOLD on, Roll Royce would still pay less than a Truck. I think we have to move to super built-up Area.

No wonder, this justify the builders charging on Super Built-up Area.
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Old 5th August 2014, 17:40   #90
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Default Re: Proposal: Private vehicles need not pay toll; instead, extra tax on new cars

So let me get this straight.
We have Road Tax for improvement of Roads (Which they take from you for every car and bike you buy). They then collect tolls because the money they get from Road tax is not enough. Now they are integrating the Toll cost into the cost of car and fuel. What is to prevent them from creating another Toll charge point because the Toll tax wasn't enough?

Besides what would be the incentive for the Toll collectors (Contractors)? I can see this work only if Government pays the Toll for every car that passes by (through the pool collected from fuel and car). But then Govt will very soon run out of funds, and they will jack up the cess on the Fuel, burdening the poor Scooty guy and M80 who will never see a toll road. And I don't see why would commercial vehicles agree to double toll? Payment via Fuel Cess + Payment at the booth.
The whole thing feels ill conceived and hasty approach in which the only gainer would be the cracks in our Indian treasury, and everyone else a Loser.
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