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MOTORINDIA
l
April 2012
Road transport sector ignored
– AIMTC President
Mr. Bal Malkit Singh, President,
All India Motor Transport Congress
(AIMTC), feels that the Budget for
2012-13 has sent a wave of disap-
pointment as there is nothing to
benefit the road transport sector
which incidentally is the highest
tax payer to the exchequer and the
second highest employment genera-
tor. Over the years this sector is cal-
lously ignored. But when it comes to
generation of revenue this sector is
squeezed to the extent possible.
Multiple taxation, multiple laws
and rampant corruption mar the
growth of this sector. Moreover, the
Ministry too is more engrossed in
road development rather than con-
sidering the basic issues related to it.
According to him, the Budget has
failed to address challenges like in-
flation but put additional burden by
enhancing excise duty and levying
of service tax. The increase in the
cess on crude oil to Rs. 4,500 per
tonne from Rs. 2,500 would lead to
escalation of diesel prices, which is
the highest input cost of the truck-
ing industry. An increase in excise
duty means an increase in the prices
of trucks. Body building of com-
mercial vehicles has now got an ad
valorem duty of 3% instead of a
specific duty of Rs. 10,000 which is
likely to be an additional burden on
truck makers.
The transport industry has been
seeking an industry status, among
other things, but the proposals made
are being conveniently ignored by
the Government. There are abso-
lutely no measures taken to float
easy financing schemes and for
streamlining policies for facilitating
smooth functioning of the industry
as well as taming corruption, Mr.
Singh added.
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budget reaction
A bid for balanced approach
– Akash Passey
Mr. Akash Passey, Senior Vice
President - Business Region Interna-
tional, 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 posi-
tive side, the proposals for increase
in infrastructure spend will give im-
petus 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 sustain-
able, reduce fuel consumption and
emissions and alleviate congestion
and stress on the limited infrastruc-
ture. As a result, one would expect
to see more incentives in this sector
instead”, he added.
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Mr. Bal Malkit Singh,
President, AIMTC
Mr. Akash Passey, Senior Vice
President - Business Region In-
ternational, and Chairman of the
Board of Volvo Buses in India