– 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 disappointment 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 generator. Over the years this sector is callously 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 considering the basic issues related to it.
According to him, the Budget has failed to address challenges like inflation 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 trucking industry. An increase in excise duty means an increase in the prices of trucks. Body building of commercial 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 absolutely 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.