The Hindu : New Delhi News : Automobile makers flay levy on diesel cars

Online edition of India's National Newspaper
Friday, Jul 23, 2004

New Delhi

New Delhi

Automobile makers flay levy on diesel cars

By Our Staff Reporter

NEW DELHI, JULY 22. The Society of Indian Automobile Manufacturers (SIAM) today flayed the Delhi Government's proposal for an additional levy of 2 per cent on private non-transport diesel vehicles as "discriminatory and not based on science".

"This discriminates between vehicles that meet existing emission norms and comply with all existing government regulations. The step is retrograde and should not be introduced," said the apex national body representing leading vehicle and vehicular engine manufacturers.

According to K K Swamy, chairman of the SIAM Taxation Committee, the policy recommendations were contrary to the Expert Committee report on Auto Fuel Policy that made the basis of National Auto Fuel Policy.

The committee had opined clearly "to the extent auto fuels meet the recommended emission norms, the choice of fuel should not be distorted by way of taxes", he added.

It was interesting that while in his address the Minister stated that this step was aimed at "encouraging individual and private owners to shift to cleaner fuels for personal transportation requirements" and to curb pollution from diesel vehicles, this statement was contradicted by his justification for the increase in sales tax on diesel from the existing 12 per cent to 20 per cent where it was stated that "the demand of diesel has been brought down substantially", he pointed out.

Mr. Swamy further said the new generation diesel vehicles were more fuel efficient and emitted les pollutants.

"In overall context there is no evidence to suggest that a diesel vehicle is more polluting than a petrol vehicle. Even the report submitted by the Madras School of Economics and NIPFP to the Union Ministry of Environment & Forests recently supports this view," he added, hoping that the Delhi Government would not go ahead with the proposed hike.