The diesel cars have long been criticized by the environmentalists as being the polluters of the nature. But a recent study by the Internal Planning Commission states something else. The note states that only 0.6% of the total diesel consumed in the country is used by the diesel passenger car population. Goods vehicles consume the maximum at 37.9%, agriculture at 18.8% and buses consumer only 6% of the total amount of diesel, the note stated. The Planning Commission note pegs the usage by taxis at 2.1% and jeeps/MUVs at 2.5%. Three-wheelers account for 3.6%, power 6.8%, railways 3.7%, industry 5.6% and others 12.5%.
The note drafted by the Internal Planning Commission is yet to be made available to the public but has been shared with the Society of Automotive Manufacturers (SIAM). The findings of the note however conflict with the Kirit Parikh Committee report that states 15% of the total diesel share is lapped up by the passenger car market. According to the Planning Commission note, transport sector (public and private) has reduced its consumption of diesel from 59% in the previous 2 years to 56% in 2010-11. This is attributed to the increase in efficiency of diesel engines. All this leads us to one main question that the government is facing now; should govt increase the tax on diesel cars?
“When the overall usage of diesel by personal cars is so low, at less than 1%, where is the argument to tax them higher. The fact is that personal diesel cars are not the major beneficiaries of the government subsidy, as is made out to be,” says Vishnu Mathur, director general of Siam.
The OEMs have already raised their voice against this hike stating that it would lead to a higher slowdown of the auto industry. The Delhi govt already imposes higher registration tax on diesel vehicles and attribute it to concerns on environmental pollution caused by diesel cars.
Source – ET
