[TusharK]

According to a media report, the NITI Aayog has proposed a plan to impose a fee of Rs. 12,000 on the purchase of new petrol and diesel cars.

The surcharge on cars will rise to Rs. 70,000 in the fourth year. As per the proposal, the surcharge on 2 & 3-wheelers and commercial vehicles would range from Rs. 500-25,000 in the first year and Rs. 4,500-90,000 in the fourth year.



The move is expected to generate around Rs. 7,500 crore in the first year alone. The funds will be used to incentivise electric vehicles (EVs) and the battery manufacturing industry. Incentives could range from Rs. 25,000-50,000 in the first year for those purchasing electric 2-wheelers, 3-wheelers and cars. These will be reduced to Rs. 15,000 by the fourth year.

Reports suggest that the government has also proposed a direct benefit to EV buyers. State agencies operating electric buses will be offered km-based incentives.

The government is also planning to offer an incentive of Rs. 6,000/kWh to encourage domestic battery production. The plan is to spend Rs. 200 crore on developing indigenous technologies. The government may also cover the entire cost of setting up charging infrastructure.

Source: Times of India

Link to Team-BHP News

[amtak]

First and foremost, they need to stop milking the middle class and honest tax paying community. Someone needs to answer - what happened to the money collected via road taxes and other indirect taxes paid by the common man.

Secondly, before charging us, create the infrastructure needed for electric vehicles. We do not have power 24X7 in many parts of the country, we have so many other infra related issues. Only if these are resolved before hand, I am okay to pay these extra charges year on year basis.

I think, someone needs to stand in elections with a promise to abolish taxes on cars

[dailydriver]

Well done, dear Government!

On one hand, you aim to double the number of petrol pumps in the country and on the other, you pick our pockets of twelve thousand rupees for purchasing a fossil fuel run vehicle. Further, you set a deadline for electrification of four wheelers and keep changing it ever so often.

Thanks for providing so much clarity. Thank you very very much!

[Sheel]

Originally Posted by TusharK

NITI Aayog

This aayog is the worst thing to have happened to our country, I wonder what would it take to completely dissolve this.

What kind of joke/circus is this, when would this cycle end? I am speechless at the ways they are coming up to milk common man.

What next, anyone having a mobile phone worth 20K+ needs to pay double the rental charges?

Anyone buying a saree over 5K, needs to pay Rs. 500 more as taxes? And this to increase in proprtion?

Anyone taking a holiday needs to declare his/her expenditure and pay 10% to the govt?

If the govt will abolish farmer's loans and do everything they can to lure its vote bank, this is going to further stoop to unmentionable levels.

I do not know, but if someone can start a petition to abolish the NITI Aayog on Change.Org, I am ready to sign up and share it.

[blackwasp]

Originally Posted by amtak

what happened to the money collected via road taxes and other indirect taxes paid by the common man.

That was used up by the babus...

Originally Posted by dailydriver

Well done, dear Government!

I think its a case of one hand not knowing what the other is doing.

Originally Posted by Sheel

This aayog is the worst thing to have happened to our country, I wonder what would it take to completely dissolve this.

What kind of joke/circus is this, when would this cycle end? I am speechless at the ways they are coming up milk common man.

You have summed up our frustration correctly. I think someone needs to point out the below pic to the folks higher up and ask if this is a joke!

[SS-Traveller]

Originally Posted by Sheel

This aayog is the worst thing to have happened to our country, I wonder what would it take to completely dissolve this.
...
I do not know, but if someone can start a petition to abolish the NITI Aayog on Change.Org, I am ready to sign up and share it.

Oh well! Couldn't help laughing out loud at your angst, which so many of us share. The Aayogs, Tribunals and Control Authorities of this country will be the death of us.

65,000 new fuel pumps (Oil PSUs to allot 65,000 new petrol pumps) be damned. How about a similar number of EV charging stations to be set up in the next 2 years?

Our friends in the government imagine an EV is like a mobile phone - you can plug it in into any wall socket, and it'll charge up in as much time as a phone!

At a fee of Rs.12,000 per fossil-fuel-driven car versus Rs.50,000 incentive/subsidy per EV, the government would make a neat profit till the sales of EVs account for 20% of all vehicular sales. And this is for the 1st yar only. By the 4th year, subsidies on EVs will drop by 70%, while the fee collected will rise by 4x or more. What kind of logic is that? 4th year onwards, we won't incentivise EVs, but penalise IC engined cars' owners?

[octane1002]

Typical Circu(s)lar okayed by some Joker with combed greying oiled hair, a comb sticking out of the back pocket of his trouser and a half-crumpled (upwards from backside, the result of sitting on your back for hours reading Whatsapp forwards) Safari suit with a gaudy gold DKNY wrist watch (we moved away from Titan gifts last Diwali) and rimless gold spectacles. Add zero IQ to the mix.

The same chap or his colleague must have okayed this (all of a couple of days earlier): PSU's to allot 65000 pumps. One hand doesn't know what the other is doing. They've outdone a circus.

[FIAT3031]

It's just crazy..

We're already being taxed at ~ 50% on the cars and to add to it is the burden of Govt.'s so called FEEBATE (penalizing the ICE cars to incentivize the EV)

It sure is going to hit the auto market further...the sales has already taken a beating owing to increase in Insurance Premium.

Seems like Govt. wants people to drag their "OLD CARS" for a reall....ly long time

[am1m]

Hmmm, wonder when Reliance is getting into EVs?

Where are the subsidies so far on EVs anyway? I'm actively looking to 'go electric' but the EV option for 2-wheels is priced significantly above the IC-based equivalent and the option for 4-wheels is seriously, seriously overpriced, especially compared to what you get in the IC-based equivalents. So where is the incentive?

Reading about these sorts of proposals along with the proposal to move RBI funds to the Govt, am wondering about the overall financial health of the country and banks. This Govt seems to be desperately seeking funds in any way possible.

[GeeTee TSI]

If considering levies to minimise pollution, why doesn't such 'think tanks' benchmark countries who have passed this stage (of encouraging environment friendly technology) years ago? Gas guzzler tax for cars having poor FE, emission based tax and so on would at least weed out polluting models while appealing to ones intelligence.

But we have an industry which is incentivised to churn out sub 4m, sub 1.2L masterpieces; which are being targeted now

[Guna]

How is it different from the adding 12000 to the already exorbitant road tax it collects? They can simply say, they are increasing the road tax.

[sri_tesla]

Originally Posted by TusharK

According to a media report, the NITI Aayog has proposed a plan to impose a fee of Rs. 12,000 on the purchase of new petrol and diesel cars.

What happened to all the money that is being collected in the name of excise duty hikes for the last 4 years? Excise duty on petrol in 2013 was Rs 9.48 per liter and its Rs 19.48 per liter now. On diesel its increased from Rs 3.56 to Rs 15.33 per liter at the same time.

In just 2 years, GOI's yearly income on petroleum products increased from Rs 1.3 lakh crores in 2014-15 to Rs 2.7 lakh crores in 2016-17. That's more than double in just 2 years burdening common people.

GOI should rather use 10% (~Rs 14,000 crores) of this extra income to subsidize EVs and charging stations rather than burdening car and 2-wheeler buyers. Many state govts already released EV policies waiving off registration charges. Why not central govt does its part?

[drmohitg]

Originally Posted by FIAT3031

Seems like Govt. wants people to drag their "OLD CARS" for a reall....ly long time

No they are not doing that too. Refer to the ban on old perfectly well maintained cars in NCR region and indirectly forcing people to buy new cars. Win win both sides for the government.

[avishar]

Anybody got any yellow vests lying around?

The government should be doing this out their own pocket. It is not the duty of current cars owners to bankroll EV sales. We are not buying fossil fuel cars out of choice, but out of necessity since there are no viable EV cars for sale in India.

[vipul_singh]

I am sorry, but it is a waste of time to react to mere 'proposals'.

If it is approved and about to be implemented, then sure we should.