[avira_tk]

The complaint is usually that the BMW owner is some freeloader, so the taxes he paid in advance is very relevant and always ignored by the whiners. Incidental benefits from the subsidy regime wont be ignored by smart people, also advanced in petrol engines have made the new age ones not so much cheaper. Also even at price parity, diesel cars will be much cheaper to run and CR engines with improved NVH are here to stay, unless hybrids become more mainstream petrol sales will continue to slide.

[Torquedo]

All -

Govt. is planning for an additional hike on New Diesel vehicles.

A direct lift from Motoroids -

Willing to buy a diesel car? Buy it now, before the government adds more taxes to offset the losses borne by petroleum companies selling subsidized diesel. Already under a lot of fire for high food inflation, corruption and policy myopia, the government isn’t quite in a shape to increase the price of diesel. An alternative, thus, as suggested by a committee headed by former plan panel member Kirit S Parikh, is an additional excise duty of Rs. 80,000 on diesel cars.

This would mean that no matter how much cheaper diesel is when compared to petrol, you would still have lost more money driving an oil burner, unless you travel to moon and back every year. It’s noteworthy that diesel cars are already about Rs. 80,000 to Rs. 100,000 more expensive than their petrol counterparts even in the small car segments. An additional duty of Rs. 80,000 would mean that it won’t make sense for short distance drivers to buy a diesel car anymore. Taxi operators, however, would still give buying diesel cars a thought based on the annual mileages logged by their vehicles.

The petrol ministry in its report has argued that the additional duty will help part fund the losses borne by state owned oil companies. Apparently oil companies suffer a loss of Rs. 11.0 + on every liter of diesel they sell. The report also suggests that the step would help reversing the recent trend where diesel cars are selling in much higher numbers than their petrol counterparts.

Source: Government may introduce Rs 80,000 additional tax on diesel cars

@ MODS - If there be an existing thread on the same topic, request for a Merger.

[Turbokick]

It would be absolutely ridiculous to tax the diesel cars as high as this
80Ks?
Is it applicable to all diesel cars uniformly or its just a rough idea about the price increase?

I hope it doesn't happen and if it happens the margin shouldn't be this high !

Such move can literally kill few manufacturers like Tata,ford and Fiat whose passenger car sales largely depend on their diesel makes.

And for the people waiting for new Swift?

[coolboy007]

If its true, this is absolutely ridiculous. There should be a proper % wise increase if its to be made which applies across all segments like a 2% or 5% extra on ex showroom, what kind of logic is this to pay 80K extra for a 2 lakh as well as a 20 lakh car.

This if implemented would totally kill manufacturers surviving on selling diesel cars, how illogical our so called "panel members" are - so a Tata Nano diesel may cost 2 Lakh ex showroom and we need to pay 80K extra taking it to 2.80

Thats more than 1 lakh of difference on OTR price, hope this doesnt go through, silly love.

[scopriobharath]

This is ridiculous. 80,000/- increase for an indica is nearly 20% of its price but for a Prado it is just 1.3% increase and for a 40 lac Audi A4 its a 2% increase.

[drmohitg]

Well if they intend to seriously hurt the sales of Diesel cars then I think the 80k increase in prices will be on the B and C segment cars. Audis and Prados anyway don't form a substantial number to contribute to there revenues. Well its time to buy that diesel car now. I am sure the govt will surely do something stupid like this in this years budget.

[Chetan_Rao]

Though it might sound like a good idea in the short/medium term, it's nothing more than delaying tactics on rationalizing diesel prices, which will eventually need to be done either way.

1. More diesel cars = More diesel sold = High subsidy bill

2. Higher tax/levy on diesel cars = people move back to petrol cars (at least the personal hatchback segment probably will) = No income offsetting subsidy bill = subsidy bill rises


The writing is on the wall (has been for quite sometime), and the dithering will only make it worse. The problem with difficult decisions; the longer you take, the
harder they become.

[drmohitg]

Originally Posted by Chetan_Rao

The writing is on the wall (has been for quite sometime), and the dithering will only make it worse. The problem with difficult decisions; the longer you take, the
harder they become.

Two things are not going anywhere from our country atleast in the next decade.

1. Reservations.
2. Subsidies.

I don't see any government in the near future to be strong enough to do away with these because surely they will be voted out and not voted back in for atleast 5-6 years.

[Chetan_Rao]

Originally Posted by drmohitg

Two things are not going anywhere from our country atleast in the next decade.

1. Reservations.
2. Subsidies.

I don't see any government in the near future to be strong enough to do away with these because surely they will be voted out and not voted back in for atleast 5-6 years.

Ironically enough, both things you mention were only written into our constitution (or law, whichever is applicable) as temporary measures until a semblance of socio-economic parity was achieved. But our politicians have not only turned them into permanent measures, but ensured that they caused more harm than good. I wouldn't be too far off the mark if I say both have been used exactly opposite to as intended.

There's an interesting comment in Ken Follett's book 'Fall of Giants' that succintly sums up the situation: No politician who wants to get re-elected will ever admit he made a mistake.

[Turbokick]

There is still no clear cut solution about rationalising the diesel as it is a very dependable fuel for many purpose other than private usage.
Such taxing will definitely discourage people from buying the diesel vehicles and hence will have 'some' control over the diesel usage.

Additional taxing will be upto 10%
So a 2 lakh rupees Nano diesel will see a 20Ks increase.
7 lakh rupees Swift can see a 70Ks increase.
70 lakh rupees Q7 might see a 7 lakh increase.

[mempheS.D]

Originally Posted by Turbokick

Such taxing will definitely discourage people from buying the diesel vehicles and hence will have 'some' control over the diesel usage.

Agreed. At least, at this juncture, civilians will be really forced to think further deeply about what suits his/her driving needs best. That way, there's a good number of both petrol and diesel cars on the road.

What I disagree with is, the lame excuse for uppping the tax ! Both diesels and petrols have their own contributions to the emission footprints, and one can only score over the other if one were to analyze the issue plain narrowly.

All said and done, if the govt was really concerned about the environment, why don't they try to heavily promote alternate fuel powered vehicles??

[georgev]

i hope this is for the new cars...still i can buy a second hand oil burner ? do'nt know India is heading where !! sales of small petrol cars will gain momentum i guess

[Bottom Torque]

Read an article in Economic times which says " Citing a study done by SIAM, he said that out of a total of 61.68 million tonnes of diesel consumed in India across various sectors during 2010-11, diesel personal cars consumed only 1.03 per cent, while for diesel taxi segment it was at 1.82 per cent.

Jeeps used for personal purpose accounted for 0.53 per cent and the same category of vehicle used for commercial purpose consumed 3.44 per cent, Sen added. "
Source Link is here

If private owners consume only 1.03 per cent of diesel, why does the government keen on increasing tax on passenger diesel cars???

[jojipg]

Originally Posted by georgev

i hope this is for the new cars...still i can buy a second hand oil burner ? do'nt know India is heading where !! sales of small peyrol cars will gain momentum i guess

even if this is for new cars, when this tax structure come into force, second hand price of oil burner will also go up relatively.

[ramzsys]

Originally Posted by jojipg

even if this is for new cars, when this tax structure come into force, second hand price of oil burner will also go up relatively.

True! The valuations for used diesels are taking a peak everyday. Few months back, a used ford ikon D of 2002/03 vintage is around 1.5 lakh. Now it is 2L+

My fiat 137D that is valued around 40-50k is now quoted upto 80k.