Wednesday, 14 December 2011

Now, a Rs 2 per liter Green Tax on petrol, Cars ?

The Planning Commission has proposed a Green Tax/Surcharge of Rs 2 per liter of Petrol, a green cess of 3% of the annual insured value of all private vehicles and a steep urban transport tax to be collected at the time of purchase of private vehicles.

The panel, headed by Delhi Metro chief E Sreedharan, has also suggested an urban transport tax on purchase of new cars and two-wheelers at 7.5% of the total cost of petrol vehicles and 20% in case of personal diesel cars.

The principle on which this recommendation has come from is "Polluter pays principle", which aims to discourage the use of private vehicles and encourage the use of Public transport.

It is estimated that the new surcharge and taxes will help the government generate Rs 235,741 crore in the 12th five-year plan (2012-17) and Rs 22,40,804 crore over 20 years.

What is your view on this ? Is our public transport infrastructure good and strong enough to take this burden ?


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