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Old 21st December 2007, 13:31   #1
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Default Congestion tax, Road tax and Regn taxes on the anvil

to control greenhouse emissions, if india signs the protocol, congestion tax road tax, huge parking charges and higher vehicle registration charges are on the anvil. special brickbats for diesel vehicles too

srik

from the mint newspaper:

Congestion, road, fuel tax on the anvil?
Hoda-led committee suggests disincentives for using cars in cities, making diesel cars, and emission-linked taxes
Padmaparna Ghosh


New Delhi: If the Indian government actually signs off—and that will be a big if—owning certain cars and parking any cars inside cities might become quite expensive. A policy to govern public transport, which weighs the adverse effects of greenhouse gas emissions on climate, drafted by a high-level government committee and being considered by the Planning Commission, the apex planning body in India, is ambitiously proposing to discourage “personalized mode of transport” while pushing public transport as the alternative. It also seeks to slap additional excise duties on automobiles that do not meet prescribed fuel efficiency norms.Mint reviewed a copy of the draft policy document. The policy’s wish list also proposes a congestion tax, levy of higher parking fees, increased vehicle registration charges, increased fuel tax as well as an annual road tax based on carbon emissions.

The draft policy also proposes to link financial payments for development of cities under the Jawaharlal Nehru National Urban Renewal Mission, a Rs50,000 crore Centrally sponsored scheme, to the ability of state governments to raise a dedicated “transport fund” by imposing an additional cess on automobiles when they are registered by vehicle owners.
It is unlikely that such sweeping suggestions, including those that will impact one of India’s booming manufacturing sectors—car manufacturing—will be implemented without significant debate or efforts by various lobbies to dilute or alter various recommendations.

“We have not seen the policy yet, so we can’t comment,” says Dilip Chenoy, director general, Society of Indian Automobile Manufacturers, an industry lobby group. “We hope the government will incl-ude the industry in discussions before finalizing anything.” The committee is chaired by Anwarul Hoda, member (infrastructure) of the commission and includes R.K. Pachauri, head of the Intergovernmental Panel on Climate Change, and director-general, The Energy and Resources Institute (Teri).
It was set up on the recommendation of the Prime Minister Manmohan Singh’s council on climate change and will be part of the national action plan on climate change. One of the conclusions at the recent United Nations sponsored talks on climate change in Bali, Indonesia, require developing nations to draw up national plans and policies on mitigation of CO2 emissions and climate change. “All ministry representatives at the meeting agreed to almost all of the recommendations,” claims Sunita Narain, director of the Centre for Science and Environment, an activist environmental group, who is a member of the committee that drafted this paper “There wasn’t a single point of disagreement. The policy incentivises states to move towards public transport with clear targets, and also disincentivise personal mode of transport by clear strategy of dividing road space according to passenger load, higher parking charges.”
Mint could not independently confirm the consensus. But, Hoda confirmed the draft policy recommendations. “We are in the process of drafting this policy, which is sensitive to climate change, so that we do not burn more fuel that what is required and necessary,” he said. “We are hopeful of submitting the final report within this month to the Prime Minister.”
To discourage personal vehicles on some city corridors, the policy recommends limiting parking space in city centres and limiting availability of road space for personal vehicles. A congestion tax in busy city centres, such as those being levied in London and Singapore, is also being suggested. A special regulatory body is also being mooted, one that could impose stiff fines, suspend, or even cancel licenses for violating rules related to use of city roads by private vehicles.
“Studies show that energy consumption in motorised individual traffic is 10 times higher than demand oriented public transport system,” say the draft policy recommendations. “On a per passenger basis, a car uses six times more energy than a bus.”

While India’s government is already pushing for stipulating fuel economy standards for vehicles, the committee has recommended that the fuel economy of new cars, commercial vehicles and two-wheelers should improve by 8% every year in the next five years. Also proposed is a “gas guzzler tax” in the form of an 8% excise duty. “Vehicles, which come up to 90% of the average efficiency (standards to be prescribed by a government body) should be taxed 8% and, as the fuel economy drops, a maximum of up to an additional 24% excise duty can be charged,” the recommendations say. The draft policy particularly targets non-commercial diesel vehicles, recommending that manufacturing of diesel cars, for instance, be restricted in India. According to Asian Development Bank estimates of Indian fuel consumption, road vehicles in 2005 consumed 58 million tonnes (mt) of fuel per year and in 2025, that consumption is expected to reach 221mt before hitting 371m by 2035. Similarly, CO2 emissions in 2005 from the transport sector were estimated at 208mt, and are expected to increase to 721mt by 2025 and then on to 1,212mt in 2035. The draft policy notes that the government or public sector’s share of transport systems has come down to 10-15% due to unremunerative routes, and says that less efficient private vehicles have taken over the role of public transport, leading to congestion and pollution. The policy suggests that the private sector, particularly major industrial groups, should be encouraged to participate in auctions of public transport systems and contracts awarded to those who seek the lowest subsidy from the government. One World Bank estimate shows that the tax burden per vehicle per kilometre is 2.3 times higher on buses as compared to cars.

The committee has agreed that this should be rationalized.
“At the Central government level, we believe that the excise duty on commercial vehicles is too high and the finance ministry will lower it,” said Hoda. “Even the state government will have to reduce taxes on modes of public transport by reducing the registration tax of commercial vehicles.”
The urban development ministry has already advised states on additional registration fees and cess on cars and two-wheelers for a dedicated transport fund. Now, the draft policy is recommending that the Jawaharlal Nehru Mission be linked to states creating such a fund. “The ministry of urban development has said that states can get money from this (mission) but, only if an action taken report is given by states that the transport fund has been created,” added the draft.
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Old 13th June 2010, 00:14   #2
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hi
An update after 2.5 years
This article was from TOI (10-6-10, Chennai edn). I think this is the right place to post this article, since one more thread discusses the same issue (Higher Tax on 2nd car & A car(bon) free day).
Mods: if the same article has been discussed somewhere else kindly delete this.

Quote:
‘ONLY WAY TO CURB CAR MANIA’

Congestion tax in cities get Jaipal’s backing

New Delhi: Urban development minister S Jaipal Reddy on Wednesday asked the states to consider imposing a road congestion tax on private vehicles to encourage public transport and check vehicular pollution in cities.
Reddy argued that the government could not stop people from buying cars but must design policies that discouraged buying of cars and promoted use of public transport.
The minister also criticized Indians for being crazy about cars and treating it as status symbols, leading to “car mania” in the country.
To a question on plans to introduce measures like congestion tax on private vehicles, Reddy said, “These are matters to be thought over and decided upon by the state governments. But having regard to size of cities, every state must think of measures like congestion tax.” He added, “It is there in Singapore and our upwardly mobile classes admire the model of Singapore. Having said that, we can’t force the states to implement this tax.”

‘Cars are no status symbols’
New Delhi: Urban development minister S Jaipal Reddy on Wednesday criticised Indians for treating cars as status symbols.
On imposing restrictions like ‘one car for one family’, Reddy said, “Restrictions cannot be imposed. Policies can be designed to discourage buying of cars and using public transport.” Calling Indians “car maniacs”, he said, “Upwardly mobile classes are crazy about cars. Car is a status symbol in the country and this state of car mania can be done away with only in a subliminal way and not by the government.”
The minister asked the authorities to take due care of pedestrians. “Roads in the country are extremely cruel to pedestrians. The foot overbridges are so intimidating that people prefer to cross the roads rather than use them. These are small things, which have to be taken into consideration,” Reddy said, highlighting that over 1 lakh people were killed in road accidents every year.

Last edited by benkey2 : 13th June 2010 at 00:16.
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Old 13th June 2010, 00:57   #3
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Jaipal Reddy calls Indians car crazy. Well, what does he use as transport? A two-wheeler? It is these crazy ministers that our country needs to get rid of. And since when has Inidan Govt. gotten so concerned about environment? All that GOI bothers about is milk its citizens for all their worth with all kinds of stupid taxes and to fill its coffers. But no matter how much money you put into these coffers, at the end of the year, they say " khazana khali hai". We all know where the money goes. Truly, mera Bharat mahan!
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Old 14th June 2010, 01:01   #4
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My cynical friend. Cars are NOT the solution. And that is a FACT.

Public transport is. But an efficient public transport is in no one's monetary favor except the silent invisible public!
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Old 14th June 2010, 02:57   #5
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The govt. first and foremost have to think what they have in hand before they start to compare India's public transport system with that of Singapore or any other foreign country for that matter. They have to improve the efficiency, comfort and cleanliness level of the system so that they can deter people from buying cars and choose to go by public transport instead.
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Old 14th June 2010, 03:31   #6
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I'd be glad to have my car parked in the safety of my garage whenever I travel alone in the city and hop on a public transport provided it is acceptably clean and I don't have to hang on a footboard or wont be crushed out of breath.

After all the taxes the govt. sucks from us, if what we see today is what they can do and if they spend more on giving colour televisions free to their vote bank, or build temples to themselves, and spend what slips their hands on improving services used by the public - then, Mr. Jaipal Reddy, take a hike! Why don't you catch a bus or a train during peak hours, sir?!
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Old 14th June 2010, 07:34   #7
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@ph03n!x - I totally agree with you. If only the public trasport is neat, clean, hygienic, puntual & a plenty. None of these are the features of state transport.

You start from home like a prince and end up like a pauper once you arrive at office. Take a look at Germany, sydney or even london. The public transport is excellent, affordable and used even by the minister's of the state.
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Old 14th June 2010, 08:15   #8
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People are already paying an insane amount as road tax for driving their cars on public roads. After taking this amount, now the government wants to discourage them from using their vehicles by imposing congestion tax. Well what an IRONY!!! The government is not at all bothered about improving the road conditions in our country. That is evident from the fact that India has become the 'road death capital' of the world. They are always busy sketching up innovative(lame) excuses to rob the citizens of their hard earned money. I think the next step after implementing congestion tax would be to charge 'non-usage penalty' for not using their cars after paying road tax.
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Old 14th June 2010, 09:11   #9
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Why does the Government not restrict the wasteful expense of using "escort cars" even for wanna be politicians etc etc etc.

I know of certain political party "hanger ons" who drive in a motor cavalade like the Q7 in the center with the "top gun" in it with lights flashing, 2 Ford Endevours in the front 2 tailing him, with red beacons flashing & bullying their way thru traffic.

THAT in my opinion is what needs to be stopped, wasteful expense.

There are various such examples I know of. Even big shark industrialists have this 2 car escort etc etc.

Would any of these people ever even think of using the Metro ?? I think not.

The culprit is the badly managed traffic, non-functional signals, pot holed roads & the like. We waste fuel worth crores of Rupees at the Toll at NH-8 or any other for that matter, because there is a traffic jam.

Traffic management coupled with good roads and an efficient public transport system will go a long way in making our cities "congestion free"

As for the growing number of cars, LOL the government is setting up more & more facilities for the industry, why ? because they get revenue, then why crib about the "number" of cars..better management is what they should focus on.
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Old 14th June 2010, 09:16   #10
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As far as taxes like congestion tax are concerned, please see them as desperate measures from a bankrupt government to raise more money to feed the avaricious politicians and a corrupt government machinery under various guises. All sorts of intellectual arguments will be concocted to devise new schemes for extorting money who seems to buy it hook, line and stinker.
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Old 14th June 2010, 09:54   #11
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Quote:
Originally Posted by hvkumar View Post
As far as taxes like congestion tax are concerned, please see them as desperate measures from a bankrupt government to raise more money to feed the avaricious politicians and a corrupt government machinery under various guises. All sorts of intellectual arguments will be concocted to devise new schemes for extorting money who seems to buy it hook, line and stinker.
Brilliant observation. You should become a political comentator my friend.

Quote:
Originally Posted by Ricky_63 View Post
I know of certain political party "hanger ons" who drive in a motor cavalade like the Q7 in the center with the "top gun" in it with lights flashing, 2 Ford Endevours in the front 2 tailing him, with red beacons flashing & bullying their way thru traffic.
Ricky thats the scene with every political party. Not just the ones who are prominant at the national level, but also the wannabe local parties which fail to put more than 1 or 2 members in the parliament.

And my dear friends the corporates do not pay taxes to the Govt (Honestly). They pay money to the people who run the Govt. If the corporates in India started paying taxes, deligently, it would wipe out India' Budget Deficit. But then, who will pay for the motorcades, helicopters, expensive lifestyles of our Netas.
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Old 14th June 2010, 10:05   #12
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Quote:
Originally Posted by hvkumar View Post
please see them as desperate measures from a bankrupt government to raise more money to feed the avaricious politicians and a corrupt government machinery under various guises.
+1.

To give an example.

From November last year, Goa government introduced entry tax for all vehicles entering Goa.

Guess why?

Tax on mining was reduced giving various reasons (China imports much less now) so to make up for the difference the stupid policy makers came up with the above entry tax. And yes most of the mining is owned by politicians so there...
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Old 14th June 2010, 21:49   #13
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Quote:
Originally Posted by Devil on Wheels View Post
Brilliant observation. You should become a political comentator my friend.



Ricky thats the scene with every political party. Not just the ones who are prominant at the national level, but also the wannabe local parties which fail to put more than 1 or 2 members in the parliament.

And my dear friends the corporates do not pay taxes to the Govt (Honestly). They pay money to the people who run the Govt. If the corporates in India started paying taxes, deligently, it would wipe out India' Budget Deficit. But then, who will pay for the motorcades, helicopters, expensive lifestyles of our Netas.
Totally agree with most of all your comments. Infact it is NOT really the National Level Politicos who do these hanger on antics it is usually the guy who lost the election but cannot swallow his ego :

As for the corporates paying the "right" taxes you are right IF they did, India would be "sone ki chidiya" once again

Frustrating but true !!!!!






Cheers
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Old 15th June 2010, 09:41   #14
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Mr Reddy should realise that when he quotes Singapore and the rest, how good is their public transportation. Here it is almost non-existent. What matters is not what the babus and netas feel ot think, but how the aam aadmi finds it.

Take Delhi, with efficient Metro services traffic congestion in Chandni Chowk area is now non-existent!

So Mr Reddy, provide good public transportation and see the results!
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Old 15th June 2010, 10:23   #15
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I for one would like to use public transport instead of the car when I am travelling alone.. right now I find that the volvo buses in bangalore is set in the right direction... however i often end up using my bike to reach a place quickly :(
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