Sunday, November 28, 2010

Use of vehicles like SUVs & BMW in India is Criminal?

                      

Emissions from Transport Sector.

 

  Mr. Jairam Ramesh , Environment  Minister, speaking at a UN function recently said, that   the Transport Sector in India contribute 7.5 per cent of the greenhouse gas emissions in the country and this is expected to be 15 per cent in the next 15 to 20 years. He says "we are worried and we are looking at how to control these emissions from transport sector. For this to happen there should be mandatory fuel efficiency standards for Auto Makers". According to him, India is the only country in the world which does not have a mandatory fuel efficiency standard.

 

Subsidized Diesel

 

 The luxurious growth of large-size vehicles like SUVs, which survived on subsidized diesel to an extent of Rs 22 per liter, is really a skewed growth of concern. There should be a reformed diesel pricing policy as the real beneficiaries of the present subsidy are the owners of the "BMWs, the Benzs and Hondas" and not the farmers and public/goods transport sectors, for whom subsidized diesel is actually meant.

 

"I am worried seeing the number of vehicles on the roads today and with the number of increasing big SUVs, it can be a recipe for disaster like the US... I am not happy... I have no control over it, unfortunately," Ramesh added.

 

"And certainly put a penalty on the type of cars that you don't want to see on the roads which is diesel driven Car, SUVs," Mr. Jairam Ramesh said. He wants gas guzzling Sports Utility Vehicles (SUVs) off Indian roads saying they emitted more carbons and called the use of vehicles like SUVs & BMWs in the country as "Criminal".

 

Effective Fiscal Policy

 

 We cannot ask people to buy or not to buy a particular car, but through an effective fiscal policy, we can certainly have the desired impact. The diesel car owners do not deserve subsidized diesel, we want them to pay market price but it will be difficult to ask the Gas Stations to charge them higher than other users such as public transport, goods transport vehicles etc.

 

So 25 % cess on the car price may be imposed on diesel cars in addition to corresponding increase in life tax imposed by the respective State Governments, so as to prevent misuse of subsidized diesel by Private Diesel car owners.

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