Re: Delhi's 2 litre diesel ban lifted; 1% green cess imposed Quote:
Originally Posted by GTO What a harebrained ban that was - glad that even the courts now agree.
What exactly did the ban achieve? All that time & effort wasted for what?
Have big engine'd diesels been blocked? Nope.
Were the pollution levels reduced? Nope. 2+ liter diesels anyway form a minuscule part of vehicular traffic to make any difference. Now they're back.
Is the customer discouraged? Nope. Big cars have already been the most taxed (excise duty slabs), and every 20+ lakh car out there is overpriced. 1% cess isn't going to make a difference to anyone.
Who's to say that this 1% collection is even going to be used in a manner that benefits society / pollution levels?
And while the big news of the month has been GST & simplification of taxes, here comes an order that adds yet another tax .
Instead, what the country should work toward is enforcing stringent pollution & safety norms. That'll benefit society at large. |
I agree with all what you have said @GTO, re the birdbrain decision to ban bigger displacement diesel vehicles & that there should be stringent norms re pollution & safety.
However, disagree a bit on GST & the impact on tax structure due to this judgment. AS far I have an understanding of GST/ VAT structure in few of the biggest economies of the world this could be quite simple to do. However, lot depends on the Bureaucracy/ Babus in India, who I bet will leave no stone unturned to make it complex again, 'cause the complex structure suits them.
Coming back to cars, the auto majors could be in for good liquidity as there would be significant savings on the tax credits on purchase/ acquisition of goods & services. Add to this the potential savings of the admin costs could work favorably for business in short term.
Hopefully, few low volume good cars could become desirable (lower prices) after 01 Apr 17. |