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Subsidy to encourage e-cars and levy on new cars to discourage: Other measures necessary

It refers to media-reports that central government is planning a heavy subsidy of rupees 50000 on purchase of e-cars while levying levy of rupees 12000 on purchase of new cars to discourage their sale.

Both the steps are grossly inadequate to practically discourage sale of traditional cars driven by petrol and diesel. With procurement price of both petrol and diesel being almost same, diesel is priced cheaper because it is used in commercial vehicles. Production of diesel-driven cars is gross misuse of having price of diesel less than that of petrol. There must be a complete ban on production of diesel-cars. All cars must have engines capable of being driven by petrol and CNG both.

To discourage production of bigger cars occupying more space in road and parking, GST, road-tax, insurance and other levies on cars with ex-showroom price say above rupees ten lakhs should be doubled. Moreover there should be a complete ban on loans on such costlier cars. Only economical cars should be purchased by central and state governments and their public-sector-undertakings including even for judges of higher courts, ministers and top bureaucrats except required for use by foreign dignitaries visiting India that too on permission from Union Ministry of External Affairs.

 

SUBHASH CHANDRA AGRAWAL

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