– Akash Passey
Mr. Akash Passey, Senior Vice President – Business Region International, and Chairman of the Board of Volvo Buses in India, has said that the Budget 2012-13 seems to have tried to achieve a balanced approach keeping in mind both economic and political imperatives. On the positive side, the proposals for increase in infrastructure spend will give impetus to PPP models. Commercial transport and public transport should derive benefits with these steps.
However, the proposal to levy excise duty on the chassis at an ad valorem of three per cent against the current flat rate of INR 10,000 will have its adverse impact on buses. And, of course, there is an overall increase in excise duty.
“While we understand the reasons for the need to collect additional revenues, we would have liked the authorities to see public transport as a tool to make cities more sustainable, reduce fuel consumption and emissions and alleviate congestion and stress on the limited infrastructure. As a result, one would expect to see more incentives in this sector instead”, he added.