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Old 26th November 2012, 20:20   #1
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Default Death knell for diesel powered cars and SUV

Just saw on the ET channel a recommendation that has gone to the finance ministry to implement a yearly road tax of Rs50,000 for suv and from Rs10,000 to Rs20,000 for cars other than suv. This tax is in addition to the road tax that we might have already paid. If this is passed and sees the light of day the honeymoon with the diesel vehicle is finally over. Pity Honda for planning to get out the brilliant diesel brio; a bit too late though.
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Old 26th November 2012, 20:27   #2
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Default Re: Death knell for diesel powered cars and SUV

Quote:
Originally Posted by drpullockaran View Post
...a recommendation that has gone to the finance ministry...
And Montek Singh Ahluwalia has been quoted saying a few months ago:
Quote:
The correct thing to do in my view is to adjust the diesel price and not impose a tax on diesel cars. There are two distortions. Petrol is priced more or less the way it should be to the refineries but it has a very high tax on it. Diesel is priced too low, but has much lower taxes. As a result, a lot of people who should buy petrol cars are buying diesel. I remember the old days when people had Ambassadors and retrofitted them with diesel engines! You want to avoid that.
Source
Not much chance of such a weird taxation happening. SIAM has its own powers too...
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Old 26th November 2012, 20:39   #3
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Default Re: Death knell for diesel powered cars and SUV

Note from Support: Lets wait for some confirmed new to surface. Till then, please use the existing thread(s) on diesel pricing / taxation. Thanks
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