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View Poll Results: Should SUV owners pay market price for diesel?
Yes 235 64.56%
No 110 30.22%
I am not sure 19 5.22%
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Old 1st December 2010, 10:32   #61
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Subsidy, in any form is a blocker of the growth in the longer run, and I mean any and all subsidies. However, given the economical and social DNA of a society some subsidies are required to be implemented. Unfortunately, in our country a scheme (read subsidy or privledge) which is relevant for the moment once implemented becomes populist politics and remains there for ever. Take caste based reservation for example, and please folks I do not have any intention to blow this topic.

So in essence I appreciate what Mr. Ramesh intents to do (assuming he meant all diesel cars or rather subsidy on fuel as a whole) however there could be issues in what he said, how he said and how (un)prepared he was in terms of implementation when he said this.

So yes, a resounding YES to the thought, let us see how determined he is and how his party/allies supports his views.
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Old 1st December 2010, 10:42   #62
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They should remove the subsidy entirely, and then remove road tax & VAT for vehicles that deserve subsidy. Those could be tractors, trucks and other transport vehicles.

That way, there is no scope for corruption or black marketing. Any new measure that allows for more corruption/black-marketing will never succeed in achieving the goal. I just hope people can understand the ground realities instead of craving for feel-good but unpractical laws.

Last edited by Samurai : 1st December 2010 at 10:53.
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Old 1st December 2010, 10:48   #63
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We've got to start somewhere as far as getting rid of subsidies is concerned.
Next step, get rid of reservations.
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Old 1st December 2010, 10:53   #64
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Default Yes

Voted Yes, 1 request to Government then- please abolish additional taxes on diesel passenger cars
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Old 1st December 2010, 11:44   #65
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I guess even educated people are not immune to media and political brainwashing. If big businesses can get "underhand subsidy" running into thousands of crores, whats wrong with us getting a few thousand rs every year?
I would surely support removing diesel and agriculture subsidies if govt also removes all "benefits" its has been giving to multi billion dollar business empires.
Since this is not going to happen, I guess I will be content with whatever little cut from the pie I can get.
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Old 1st December 2010, 11:47   #66
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But making ONLY the SUV owners pay more is not right.
Instead the subsidies must go and all the diesel vehicles must pay the market price.
the extra taxes on agricultural and other vehicles should go thereby benifiting the right persons.

The main reason for a subsidy was to give benifit to farmers and essential goods transporters.

I feel that diesel car manufacturers are getting the benifits more than anyone else.

Presently the demand for diesel cars is prompting people to buy with them (even at a premium).
This is utilised by the manufacturers by overpricing the diesel variants.
remove the subsidy and less people will buy the cars at present price.
this will force the diesel car manufacturers to reduce the prices towards the actual.

Common sense is what our minister seems to be lacking though the intent is right.
I don't know why he wants to make enemies when he can do without them.

He will also make foes with many his fellow politicians...all the present ministers demand an SUV and just imagine if they are made to pay at market price.

As an afterthought.... I don't think it matters anything to them. They will continue to use taxpayer's money anyways.
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Old 1st December 2010, 11:55   #67
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Agree with the Ayes. I have a question - where is the subsidy? The govt. takes a good chunk of money as taxes, and then refunds a fraction to the OMCs. This is not subsidy in my view of things. All that they have done is to charge a lower excise on Diesel than on Petrol - cause they are scared of the truckers lobby.

They will love it, differential pricing, then more baksheesh down the line for everyone!
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Old 1st December 2010, 12:15   #68
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there are stringent laws already against corruption, only they are not being enforced.
Mere suspension of erring official is not stringent.

Subsidy is for the trucks and other transport vehicles.
You yourself answered, if the subsidy is for transport & agricultural sector, let it remain for that purpose only. Why should it lawfully pass on to others.

government employees, they will turn that into a money making scheme.Let's consider our traffic accountants or documents checkers in the city roads. Every traffic SI finds a junction every day and stops passing by vehicles randomly and checks the documents. Because that is where the money is... in fines and bribes.
As I said Im dead against corruption which is prevalent everywhere, traffic police is also a part of the corrupt system. Why not carry all the documents/papers along, so that the need for bribing doesn't arise. I always do that. So, who is responsible for corruption here, the persons not carrying papers are equally responsible.

You want to ration diesel, I'll bet lot of SUV owners will manage to get that diesel ration card.
Fine them, challan them, etc. In the long run this move will discourage people from buying SUV's & the motive is accomplished. Every policy change takes time to implement from the grass-root level, this policy will also take its own sweet time but will be certainly be rewarding in the long run.

The clear mandate of this poll is a reason enough to believe that this policy is much needed & will be good for the Country. Democracy it is!

Last edited by Samurai : 1st December 2010 at 12:53. Reason: Avoid commenting on mod action
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Old 1st December 2010, 12:32   #69
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I am ok with the market price for any vehicle or any goods & service, if the market price is just (without corruption, our taxes should be low).
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Old 1st December 2010, 12:36   #70
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Firstly, to my knowlegde the only difference between market price and the current price for diesel as of today is max INR 2. Dont think it would go beyond that.

I guess this question doesnt arise at all. Meaning, I dont think there are any SUV guys who would object to paying INR 2 more for this, its just too inflated a demand.
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Old 1st December 2010, 12:51   #71
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YES..but it should be applicable for all diesel passenger vehicles.Its ridiculous to see a Merc or BMW owner getting subsidy. Subsidy should be given only to agriculture and transport sector
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Old 1st December 2010, 12:57   #72
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Just an aside observation on the so many yes's on this thread. Most of them come with a rider. Yes but first do this, do that, etc etc.
No one is willing to be the first one to participate in a step in right direction, even when they know it is the right thing. They want other "right steps" to accompany their right step!
What is it they say about human nature and a can full of crabs?
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Old 1st December 2010, 13:08   #73
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The market needs to be made much more efficient.

I am paying bloody 35-40 rupees a KG for onions. Surely if the diesel went to market pricing, it would cost me max 37-38 rupees in the WORST case.

Its time we made the food chain less wasteful & removed the intermediaries - this will ensure the poorer people have access & in parallel remove the diesel subsidy. Its a wasteful dinosaur whose time has come.
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Old 1st December 2010, 13:49   #74
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Originally Posted by jaysmokesleaves View Post
All our politicians and celebrities[including Amitabh Bachhan] reps will be standing in line for their rations of diesel for their SUV guzzlers.
Next government statistics will show tripling of consumption in diesel for farm use, and Agriculture ministry will project success of farmers and mechanical farming as its progress made story!
The only best way is drop subsidy and implement Zero taxes on Diesel.
Government can afford to loose a few '000 crores revenue, when they can garner this amount by selling small parts of their Navratnas holdings.
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Old 1st December 2010, 13:58   #75
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I support removal of diesel subsidy as most of the benefits is pocketed by transportation sector, rich farmers having power equipments like tractor /combine and off course private cars/SUV’s.
In majority of the cases I have seen that poor marginal farmer for whom this subsidy is intended does not require it as he might not own a tractors/pump sets to avail subsidy benefits.
Transport companies can absorb the cost extra cost by improving efficiency. I am sure private vehicle owners can bear the extra cost and finally government should also pitch-in by lowering the tax levied on fuel.
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