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Old 4th August 2011, 15:42   #136
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Default Re: Car owners may not get subsidised diesel

Here is the link.
Car owners may not get subsidised diesel: Government - The Economic Times

Cheers!
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Old 4th August 2011, 15:46   #137
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Default Re: Car owners may not get subsidised diesel

Well i guess i don't know the good or bad part of this but i guess the license plate colors (black on white background) could be used to classify the vehicle as a non-subsidied diesel vehicle.
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Old 4th August 2011, 15:47   #138
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Default Re: Gov't considering tax hike on diesel cars

Will the existing owners also be targeted or the new diesel cars being sold will be bearing the brunt?
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Old 4th August 2011, 15:50   #139
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Default Re: Gov't considering tax hike on diesel cars

Does this proposed hike changes scenario of whether Petrol or Diesel cars are economically viable? Any idea how it will affect long run for say 5+ years. I have good notion of changing my booking of Swift Zdi to Swift Zxi. Pls comment.
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Old 4th August 2011, 15:54   #140
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Default Re: Car owners may not get subsidised diesel

IMO administering/ regulating subsidised diesel for some and non subsidised diesel for cars will be a nightmare and will only resulting in black market/ pilferage. The solution lies in differential excise duty upfront to pay for subsidies during the car's lifetime.
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Old 4th August 2011, 15:59   #141
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Default Re: Gov't considering tax hike on diesel cars

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Originally Posted by shuvc View Post
Will it really hurt the Auto industry too much? People who are planning to buy a car would anyway do so. I don't think a 20K to 70K increase (presumably for small to big cars) would deter them much.

Overall petrol cars might start selling a bit more than their diesel counterparts.
Most car manufacturers are charging a premium of 70k to 1 lakh on their respective diesel models and that price have to be cut.

Also prospective customers who has a budget of 10L plus might not worry much but a person with a 3-6 lakh budget would think twice. Tata Nano Diesel would cost 10% more!
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Old 4th August 2011, 16:01   #142
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Default Re: Car owners may not get subsidised diesel

Oh dear God! More opportunities for our desi brothers to bend the rules and make money.

I can imagine the creativity this spawns: registering private cars as yellow-plates, fuel station owners having "setting" with private car owners to provide subsidised diesel at a "small premium"...the possibilities are endless!

I say: end this hypocrisy and deregulate diesel prices once and for all. Extend subsidies to sellers of fruit, vegetables, grain and other essentials if you're so worried about prices going up. It's not as if inflation is firmly within control anyway!
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Old 4th August 2011, 16:06   #143
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Default Re: Car owners may not get subsidised diesel

I think this should be merged with existing threads -

http://www.team-bhp.com/forum/indian...el-prices.html
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Old 4th August 2011, 16:17   #144
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Default Re: Gov't considering tax hike on diesel cars

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Originally Posted by hdnivara View Post
This should have been done years ago!
The subsidy given (on fuel) for diesel car owners is unjustified.
Gov't never gives subsidy to any fuel, be it petrol or diesel. The word subsidy is grossly misused by the politicians to trick us.

The Gov't taxes a few rupees less on diesel and calls it "Subsidy"!
In reality Gov't (State + Central) taxes come close to 100% of actual cost. If a liter of petrol cost Rs. 65, the total taxes comes to around Rs. 30.

The "Subsidy" loss as Gov't calls it, is basically the revenue loss occurred as a result of them not able to rip off form citizens as much as they would have liked.
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Old 4th August 2011, 16:19   #145
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Default Re: Car owners may not get subsidised diesel

A total lack of understanding at the grass root level. Now the govt will make sure that the petrol pump walas can make money on diesel. They will sell it to private owners (maybe not to all) at a premium. Or the farmers (or many guys who will register or do something to get the 'tag' of farmer) can sell diesel to private car owners at additional cost.

Govt is promoting 'black marketing' by making a rule which has multiple loop holes. Either de-regulate diesel (and let the inflation go up) or just let it stay the way it is. What's the big fuss about.

All you people who have been crying for 'I get unfair treat...I am petrol car..booo-hoo' need to tell me one thing. We get screwed by so many unfair taxes while the rich businessman has fun. If in such a scenario, if some of us get add on benefit which may not have been meant for them, so what??

An example is in front of us. Our taxation system. The employed 'upper middle class' junta gets TDS, while the 'rich' businessman doesn't pay any tax coz he shows his salary as 5 l.p.a. Another one of such things coming up. Govt promoting black marketing.

Oh, yes. I'll believe it when it happens. This discussion has gone on for ages.

BTW, I think our FM is one of the poorest performing ministers.

Disclaimer: I have 3 petrol cars. So, I am not a diesel supporter. Although my next purchase will be diesel one.

Last edited by Abhi_Automobile : 4th August 2011 at 16:26.
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Old 4th August 2011, 16:30   #146
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Default Re: Car owners may not get subsidised diesel

Car manufacturers charge ~1L premium for a diesel car. Somewhere in that calculation, the savings because of diesel are considered. So once the subsidy is removed and the price-differential comes down, would the diesel cars become cheaper?
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Old 4th August 2011, 16:36   #147
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Default Re: Car owners may not get subsidised diesel

Quote:
Originally Posted by noopster View Post
Oh dear God! More opportunities for our desi brothers to bend the rules and make money.

I can imagine the creativity this spawns: registering private cars as yellow-plates, fuel station owners having "setting" with private car owners to provide subsidised diesel at a "small premium"...the possibilities are endless!

I say: end this hypocrisy and deregulate diesel prices once and for all. Extend subsidies to sellers of fruit, vegetables, grain and other essentials if you're so worried about prices going up. It's not as if inflation is firmly within control anyway!
I completely agree with Noopster.

There are seemingly endless ways in which "Enterprising Indians" can make pot loads of money if this proposal gets implemented. It will just lead to servicing corruption. If there was not already enough being talked about the Petrol/Diesel Mafia, this will just add to the it..

Government should realize this and make processes simplified and streamlined, instead of promulgating a whole new set of rules that can be bent/twisted.
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Old 4th August 2011, 16:37   #148
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Default Re: Car owners may not get subsidised diesel

Quote:
Originally Posted by Abhi_Automobile View Post
All you people who have been crying for 'I get unfair treat...I am petrol car..booo-hoo' need to tell me one thing. We get screwed by so many unfair taxes while the rich businessman has fun. If in such a scenario, if some of us get add on benefit which may not have been meant for them, so what??
Just because we are screwed at one place doesn't mean we should get screwed elsewhere too. 'Screwed' might not be the appropriate word here. But thing has got more to do with our country as a whole than a petrol car individual. Diesel is cheaper (partly due to tax structure & partly due to subsidy) and so the auto companies charge a huge premium on them to make profits. e.g. recently after the last hike in petrol, VW increased prices of all it's diesel models. Who's profiting by that? Now if tomorrow govt frees diesel pricing or increases taxes, auto companies will be forced to partly compensate (reduce profit levels) for that pricing difference to make sure their cars sell. Now that would make economic long term sense + govt can use that money on other welfare projects (whether it does or not is meant for another forum).

Disclaimer: I do not agree with tax increase for just new diesel cars (what about existing owners?) or difference pricing for private vehicles/public transportation.
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Old 4th August 2011, 16:42   #149
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

The moment there are two different prices for diesel, it will lead to price arbitration. Which means black marketing.

Also, what about generators? Almost all corporates have huge generators chugging away in their basement or backyard. How much will they pay?
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Old 4th August 2011, 16:45   #150
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Default Re: Gov't considering tax hike on diesel cars

Quote:
Originally Posted by channelv View Post
Gov't never gives subsidy to any fuel, be it petrol or diesel. The word subsidy is grossly misused by the politicians to trick us.

The Gov't taxes a few rupees less on diesel and calls it "Subsidy"!
In reality Gov't (State + Central) taxes come close to 100% of actual cost. If a liter of petrol cost Rs. 65, the total taxes comes to around Rs. 30.

The "Subsidy" loss as Gov't calls it, is basically the revenue loss occurred as a result of them not able to rip off form citizens as much as they would have liked.
I don't think so. While you are right about the duty, there's more duty on petrol as it was believed to be fuel private transport and hence considered the fuel for the "rich". Diesel is taxed less as it was the fuel for the poor hence it's cheaper. On top of that OMCs are forced to sell it at a price at which they incur a loss of x Rs, which comes out of govt pockets (as oil bonds etc etc) - hence the subsidy of x Rs.

One way to reduce subsidy would be to reduce tax which obviously they do not want to do as revenues will dip.
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