From OLD to NEW ? No
, go NEWER !
Economic Times ( 19 Sept 2016 ) carries following
news report :
GST comes in
way of government’s plan to scrap old vehicles
" The government's ambitious programme to
get old, polluting vehicles off the road has hit an unexpected speed bump: Goods and
Services Tax.
The Voluntary Vehicle Fleet Modernisation Programme ( V-VMP ) is back on the drawing board as the government reviews its options to reward those who agree to junk their old vehicles to buy new, less polluting, ones.
The earlier plan was to levy lower excise tax
on new vehicles bought under V-VMP.
But the new tax system that is expected take
effect next fiscal year will amalgamate excise tax into the overarching
indirect tax called GST. The
finance ministry doesn't favour giving incentives under GST and has directed the roads transport ministry
to examine other methods to encourage people to scrap old vehicles.
The draft policy currently proposes slashing excise duty by half on
the purchase of a new vehicle after scrapping an old one, fair value for the
scrap and special discounts from automobile manufacturers.
The incentives are expected to reduce the cost of a new vehicle for the buyer by 8-12%.
Further, to encourage commuters to shift to new
and high capacity buses, which will help decongest roads, the policy also
recommends complete excise exemption for state transport
buses. "
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Simply replacing OLD petrol / diesel vehicles with NEW petrol /
diesel vehicles is a half-way house !
No one understands this better than our " Minister-in-a-Hurry
" , Shri Gadkariji , who does not
believe in the theory of " Evolving
through Incremental Improvements "
That is the reason he mandated the vehicle manufacturers to jump
straight from current BHARAT 4 emission
norms to BHARAT 6 emission norms , (
bypassing BHARAT 5 norms ), by
2020 !
He knows how 800 million poor Indian Citizens who had never
owned a landline telephone , simply bypassed
it with a cheap mobile , to usher a Communication
Revolution in India !
But even he cannot persuade the just constituted GST Council ( which will hold its very first
meeting today ) , to reduce GST rate for new vehicles . That would open up a
" Pandora's Box "
But surely he can convince his Cabinet Colleagues ,
* The FUTILITY
of just replacing OLD with the NEW ( petrol or diesel )
* The DESIRABILITY
to move straight from OLD ( petrol /
diesel ) to NEWER ( electric vehicles )
Here is how this can happen ( - and without having to reduce GST on the new electric vehicles ! ) :
Abolish CORPORATE
INCOME TAX for next 10 years for the following manufacturers
/ service providers ,
# Manufacturers of Electric Vehicles and Manufacturers of
" Special Purpose Components " thereof
# Manufacturers of equipment needed for charging of
electric vehicles
# Companies owning and operating Electric Charging
Stations
# Companies manufacturing Solar Power Generation Equipment
# Electric Utility Companies owning / operating Solar
Power Generation Stations
( Surely , we don't want to simply transfer the
pollution from cars to fossil fuel power plants ! )
# Any other manufacturer / service provider who helps to
accelerate this revolution
Now , with this " INCENTIVE
" , imagine the kind of " FIERCE
COMPETITION " among the vehicle manufacturers to quickly
switch-over from petrol / diesel to ELECTRIC
VEHICLES , in order to survive !
Expect a MAD RACE
to switch over - a race in which selling prices of electric vehicles gets 10 % lesser than equivalent petrol / diesel version !
No need to " incentivize
/ reward " the buyers with a
reduced GST , for scrapping their old
polluting vehicles !
Just harness the combined power of Corporate GREED with INSTINCT FOR SURVIVAL !
Entire World would want to copy the MIRACLE that gets unleashed in India
I hope Shri Gadkariji will give my suggestion , a serious
consideration
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22 Sept 2016
www.hemenparekh.in / blogs
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With regards,
hemen parekh
Marol , Mumbai , India
( M ) +91 - 98,67,55,08,08
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