SIAM: Taxes on diesel engined vehicles will denounce technology

Capturing the annoyance of higher taxes on the diesel vehicles, SIAM (Society of Indian Automobile Manufacturers) mentioned that such kind of move will stigmatize the diesel technology that would be completely unfair to the automobile sector. The senior director of SIAM, Mr. Sugato Sen pointed out that there is a big fright in the auto industry that some ad hoc tax may be charged on the diesel vehicles. And if that is done, it will totally denounce the diesel technology that will be very unreasonable to the auto industry.

The government of India is all prepared and geared up for the 2012-13 Budget . This time around, there have been rumors about the higher taxes to be charged on diesel engined cars as sponsored fuel has been abstracted for the personal use by the wealthy and rich. According to certain earlier reports, it was suggested that some extra excise duty of about Rs. 80000 will be put on the diesel cars to dampen more diesel being distracted to the personal auto sector. Mr. Sen also told that it was not correct to presume that a huge chunk of diesel has been consumed by passenger vehicles.

As per a study done by SIAM, Mr. Sen mentioned that about a total of 61.68 million tons of diesel had been used up in the country across numerous sectors during the time period of 2010-11, whereas the amount of diesel consumed by personal cars was merely 1.03%. On the other hand,the diesel taxi segment consumed around 1.82% of diesel. Jeeps, which are used for personal use totaled up for 0.53% and the similar category of vehicles for commercial function used 3.44%. Another reason for the higher taxes that could be put on the diesel vehicles is the major difference between the petrol and diesel prices. In Delhi, the petrol costs about Rs. 65.62 per litre, whereas diesel costs Rs. 40.91 per litre. Therefore, the demand for diesel vehicles increased substantially over the years.

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