Panel moots higher tax on diesel cars

NEW DELHI: Diesel cars and SUV owners should pay higher tax when purchasing these vehicles, the government-appointed committee recommended on Monday.

While diesel is cheaper in Indian market, diesel cars will cost more as committee suggest an up-front tax on vehicles to compensate for differential fuel pricing. The panel headed by Kirit Parikh on low carbon strategies for inclusive growth, which submitted its interim report, also recommended mandatory vehicle rating system and minimum efficiency standards for all vehicles.

The committee says the measures will help 10% reduction in fuel consumption along with improvement in air quality, road safety, better mobility and energy security..

The Parikh committee report came out with suggestions to adopt low carbon strategies for power, transport , industry, buildings and forestry sectors. It projects a range for green house gas emissions intensity reduction in 2020 for both eight and nine per cent real GDP growth.

For transport sector, it has recommended to increase in railways' share, which is more energy efficient, in freight transports by speeding up construction of dedicated freight corridors , better operational efficiency and reducing burden of cross-subsidy vis-à-vis passenger traffic.

Worried with declining share of public and non-motorized transports , the committee has asked to frame housing and habitat policies to encourage neighbourhood shops by promoting mixed land-use cities, city planning to encourage public transport and mass transport corridors for medium cities.