Simplified Laws Guide to Taxation and Legal Concern I feel the Government is insulting the elite class of India. The rich man buys a Land Rover or Mercedes Benz or Audi paying upwards of 50 Lakhs. But he buys diesel at same subsidized rates like any other commercial transport vehicle. The rich man can afford and maybe willing to pay the market price for diesel. But the Government, where have you made a provision or a facility for him to buy it at market rates?
Let us decode the diesel consumption data of India. As per the report given by M/s.Nielsen on 28th January, 2014 to the Government, private cars and SUVs consume 13.15% of the total diesel consumption in India.
The diesel subsidy bill of the Government is close to Rs.40,000 Crores. So, the diesel subsidy given to private cars and SUVs is around Rs.5000 Crores per year. Not a big amount? This money is sufficient to complete Phase I of Bangalore Namma Metro project and if the subsidy amount is used for the next 2-3 years, the entire Metro project can be completed. Isn’t it big money?
It is not very difficult to devise a mechanism to offer differential pricing for diesel sales. The Government can issue diesel card to all Trucks, Public Transport buses and 3 wheelers. These cards can be issued at petrol filling stations. These cards can be linked to Permanent Account Number (PAN) of the owner of the vehicle. (This can also help to crack Income Tax evaders).
The petrol stations can be offered higher commission for sale of non-subsidized diesel. So, the retailers will also be careful and offer subsidized diesel to the commercial and public transport vehicles.
This way the Government can also bring back the pride of the rich class of the society! Let the rich class take the pride of paying the market price for diesel and never feel that ‘their luxuries are subsidized’
Thought for the day
The World’s hunger is getting ridiculous. There is more fruit in a rich man’s shampoo or soap than in a poor man’s plate.
