Road ministry has proposed to exempt buses and private cars from the toll across the country.
Only commercial vehicles will be charged tolls.
Let's start with some facts before we start with the opinions :
1.In India , commercial vehicles contribute about 86% of total toll tax revenues , while private vehicles contribute to about 14% of toll tax revenues in India. To be precise the data for the year 2013-14 was Rs.9800 crore from commercial vehicles and Rs.1600 crore from the private vehicles.Total revenue collected in India in 2013-14 was Rs.11,400 crore.
2.It is projected that government will suffer a loss of about 27,000 crore in the next five years if the above stated policy is applied.To balance this , Road ministry has proposed 3 measures which are as follows:
a.Increase the cess on petrol and diesel from existing Rs2 to Rs.3.(Cess is kind of a TAX)
b.Levy a one-time fee of 2% on the purchase of new personal vehicle
c.One-time fee of Rs.100 on existing personal vehicles.
All the measures stated by the Road ministry will help government to earn about Rs.32,600 crore (an estimation) as against the loss of Rs.27,000. So , the government will be in profit.
In my view, this is a very good step as it would lead to less congestion on the road which is the problem in most of the metropolitan cities in India. Other point is that the excess income can be used to maintain the roads which is the major problem faced by transportation system in the country.
Any other views Guys !! Now the forum is open for discussion we can have discussion about it in the comments section below !!!
Only commercial vehicles will be charged tolls.
Let's start with some facts before we start with the opinions :
1.In India , commercial vehicles contribute about 86% of total toll tax revenues , while private vehicles contribute to about 14% of toll tax revenues in India. To be precise the data for the year 2013-14 was Rs.9800 crore from commercial vehicles and Rs.1600 crore from the private vehicles.Total revenue collected in India in 2013-14 was Rs.11,400 crore.
2.It is projected that government will suffer a loss of about 27,000 crore in the next five years if the above stated policy is applied.To balance this , Road ministry has proposed 3 measures which are as follows:
a.Increase the cess on petrol and diesel from existing Rs2 to Rs.3.(Cess is kind of a TAX)
b.Levy a one-time fee of 2% on the purchase of new personal vehicle
c.One-time fee of Rs.100 on existing personal vehicles.
All the measures stated by the Road ministry will help government to earn about Rs.32,600 crore (an estimation) as against the loss of Rs.27,000. So , the government will be in profit.
In my view, this is a very good step as it would lead to less congestion on the road which is the problem in most of the metropolitan cities in India. Other point is that the excess income can be used to maintain the roads which is the major problem faced by transportation system in the country.
Any other views Guys !! Now the forum is open for discussion we can have discussion about it in the comments section below !!!
Another positive step towards Smart Cities. Lesser Congestion on city roads. Lesser Noise and Air Pollution. Can be implemented.
ReplyDeleteI beg to disagree with the Road ministry proposal. Firstly, the life tax on vehicles stands at 9% and for the next vehicle it increases by a margin of 3 percentage points to 12%. So levying new fees is not an option to discourage newer vehicles, rather it inflates cost of commodities.
ReplyDeleteSecondly with the advent of GST, the toll tax which is currently under the purview of State government, stand to lose revenues and hence a political blocker.
Also, the proposal comes under the similar lines of double taxation. A commercial vehicle owner, pays as per the new proposal with increased cess, one-time fee and also pays Toll Tax. This is double burden. Considering this fact to perspective, the new estimated revenue should be five fold.
The government needs to perform exhaustive studies & come up with a newer proposal to address these shortfalls.
there will be reduction in cost of production because a couple of taxes were applied on raw materials used for production . also on transfer of raw material interstate which used to increase the cost of production . also after production less tax would be levied so cost automatically comes down.
ReplyDelete