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Govt. of India Planning Rs 2 Green Tax on Petrol
The proposals have been tabled by the Plan Panel Group in the Planning commission. The panel is headed by Delhi Metro chief E Shreedharan. The panel is of the opinion that the polluter must pay and the generated revenue from the green tax can be used to upgrade existing public transport systems.
This green tax on petrol will be a huge burden on a regular user. The tax component in the petrol price is already the largest in the world. By making petrol dearer the government will only manage to increase inflation and also reduce vehicle sales. Car sales have already shown signs of dipping with carmakers struggling to sell petrol cars. If this green tax on petrol cars is imposed, these cars will become even more unattractive than diesel cars.
Diesel cars are more polluting than petrol cars but the government is not planning to add any tax or cess on diesel as it is used not just be vehicles. But our question is will increased petrol prices truly boost the number of people using public transport. Unless there is a viable public transport system that can deliver maximum service to the people, any amount of tax on fuel will not be effective.
Further the government has claimed this green tax on petrol will be used to expand and modernise urban transport systems. But why is the rural transport segment being ignored? This despite the major chunk of population living there and even a major portion of petrol being sold in rural areas. Don"t you think these pans are a little unfair?
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