It's high time, India should revamp Automobile Taxation and make it environment friendly
I was just reading a news article which quoted that Mr. Nitin Gadkari wants to push cleaner vehicles.
I think a very good idea to force manufacturers would be adopt a tiered tax structure based on engine emission and fuel efficiency.
The current structure based on cost of the vehicle, engine size and fuel option leaves no incentive for manufacturers to make cleaner vehicles apart from natural competition in the industry. With current structure, they'll continue to meet engine size / car length / ground clearance guidelines irrespective of the fact that they might be using old engine technology with high Carbon Emissions.
Most of the European countries have also adopted tiered taxation based on vehicle emissions irrespective of the overall size of the vehicle.
For reference, I am providing the tax bands followed in UK:
Band CO2 emission (g/km) 12 months rate
A Up to 100 £0.00
B 101-110 £20.00
C 111-120 £30.00
D 121-130 £110.00
E 131-140 £130.00
F 141-150 £145.00
G 151-165 £180.00
H 166-175 £205.00
I 176-185 £225.00
J 186-200 £265.00
K* 201-225 £285.00
L 226-255 £485.00
M Over 255 £500.00
With above example, you'll notice how the tax rates increase exponentially for high emission vehicles. Making them less attractive for the market.
Additionally, it'll bring much needed rationalization in automobile taxation. more
I think a very good idea to force manufacturers would be adopt a tiered tax structure based on engine emission and fuel efficiency.
The current structure based on cost of the vehicle, engine size and fuel option leaves no incentive for manufacturers to make cleaner vehicles apart from natural competition in the industry. With current structure, they'll continue to meet engine size / car length / ground clearance guidelines irrespective of the fact that they might be using old engine technology with high Carbon Emissions.
Most of the European countries have also adopted tiered taxation based on vehicle emissions irrespective of the overall size of the vehicle.
For reference, I am providing the tax bands followed in UK:
Band CO2 emission (g/km) 12 months rate
A Up to 100 £0.00
B 101-110 £20.00
C 111-120 £30.00
D 121-130 £110.00
E 131-140 £130.00
F 141-150 £145.00
G 151-165 £180.00
H 166-175 £205.00
I 176-185 £225.00
J 186-200 £265.00
K* 201-225 £285.00
L 226-255 £485.00
M Over 255 £500.00
With above example, you'll notice how the tax rates increase exponentially for high emission vehicles. Making them less attractive for the market.
Additionally, it'll bring much needed rationalization in automobile taxation. more
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Main issue with corruption is that we have accepted it as a part of life. Issue is we have given in to the idea of bribing a traffic police chap, a government babu. I think the main issue is that we don't know whom to address the issue to corruption to. What should I do if police office asks for a bribe? what should I do when I have to bribe a government babu to get my work done? Yes I can escalate it to authorities but we all have grown up to see the repercussions. People against whom we raise voice come back to teach lesson and the work too remains pending. There are machineries in other countries where you can call the authorities on 1 single number and the issue will be taken care off.....example...one can call to tell if someone was over-speeding/asking for bribe etc in USA. each state has a dedicated helpline number and actions are prompt. Secondly, these helpline/bodies should be accountable and responsible. I believe that if the government organisations are made responsible and accountable at least 50% of corruption will go. As they know no one is watch, or if someone will see, they will use it for their own benefit, the vicious circle of corruption continues. Public awareness is another issues. People themselves offer shortcuts to get their work done. To get the work done, the first question that comes to mind is whom should I approach to get it done faster even if official deadline has not been crossed. more
Jun 06
