But Trans-Tax will be Great !
Context :
Green Tax coming for older Vehicles /
Business Line / 26 Jan 2021
Extract :
Ø The Ministry of Road Transport and Highways has
given its nod to a proposal to levy a Green Tax at 10-25 per cent for,
# commercial vehicles that are over eight
years old and
# personal vehicles of over 15 years.
Ø Simply put, cabs
and trucks used for commercial purposes will have to pay a higher tax after eight years.
Ø According to an official statement, Nitin
Gadkari, Minister for Road Transport and Highways, has also approved the policy of de-registration and scrapping of vehicles
that are over 15 years old owned
by government departments and public sector undertakings. Once notified, it
will come into effect from April 1, 2022.
Ø Transport vehicles older than eight years could be charged the Green
Tax at the time of renewal of fitness certificate, at 10-25 per cent of the road tax, and personal vehicles will face
the levy at the time of renewal of registration certification after 15 years, the statement said, adding that depending on fuel
(petrol/diesel) and type of vehicle, the tax will be levied.
Ø The taxation regime favours non-diesel, non-petrol vehicles.
Ø For instance, vehicles like ‘strong hybrids’
(that can run fully on electric, or full internal combustion engine or a
combination), electric vehicles and alternative fuels like CNG, ethanol,
LPG will be exempted.
Ø Vehicles used in farming, such as tractors, harvesters and tillers, and public transport vehicles, such as city buses, will be
charged a lower Green Tax, while a higher levy (50 per cent of road tax) is proposed for vehicles being registered in highly polluted cities, said the release.
Ø The revenue collected from this tax will have
to be sequestered in a separate account and used for tackling pollution, and for States to set up state-of-art facilities for emission monitoring.
Ø “The industry is not clear on the proposal yet,
as there are points like ‘higher Green Tax (50 per cent of road tax) for
vehicles being registered in highly polluted cities’. So, we need to get the
details of what the definition of ‘highly polluted cities’ is,” an auto
industry tax, said SP Singh, Senior Fellow, Indian Foundation of Transport
Research and Training. [ sps@iftrt.org ]
=================================================
Dear Shri Gadkariji,
Congratulations for proposing GREEN
TAX , based upon:
Ø Type of transport,
viz: Private or Public
Ø Use of transport, viz: Carrying Passenger/ Carrying
Goods ( commercial ) / Agriculture
Ø Type of Fuel - Energy, viz: Highly Polluting (
Petrol – Diesel ) / Non Polluting ( CNG-LPG-Ethanol-Electric )
Ø Where Used , viz: In highly
polluted cities / Rural Areas – Open Highways
Ø Age of Vehicle , viz: Less than 8-15 years / More
than 8-15 years
Green Tax is
Good, but TRANS-TAX ( proposed in my following
email ) would be GREAT
Ø
Transport : an Integrated Logistic Plan ?...................[
20 Nov 2018 ]
In this email I urge you to look up the details of my proposal under
following paragraphs :
Ø
Problem Statement
Ø
Guiding Principles
/ Goals of Integrated Logistics Plan
Ø
Road-Map
to achieve these objectives
Ø
Logic
for determining “
Harm Quotient "
Ø
Illustration of the Computation of “ Harm
Quotient “
Ø
“Tran-Score is total of “ Harm
Quotients “ of various factors
Ø
Some more
examples of calculation of “ Tran-Score “
Ø Technology Platform
# NaviC : the Navigator
# Internet of Vehicles [ 04 Mar 2017 ]
# A New Way to E-Way ? [ 15 July 2017 ]
Ø
How will
this system work ?
Ø
Linkage of Tran-Score with amount of “ Trans–Tax
“ payable
Ø
How else can a NaviC
based “ Vehicle tracking – Taxing system “ benefit citizens
?
Ø
Time-Frame for implementation of this proposal
Ø
Which country is
most likely to implement this first ?
=================================================
COMPARE & CONTRAST
|
Parameter |
My Proposal ( 20
Nov 2018 ) |
Govt Proposal ( 26
Jan 2021 ) |
|
Private transport / Polluting transport |
Minimize |
Minimize |
|
Public transport / Non-polluting transport |
Maximize |
Maximize |
|
Land-based transport / “Within City
“transport / “Privately Owned transport |
Discourage |
Discourage |
|
Air Air-based
transport / Water based transport / “Public owned “Transport / Shared
transport / Night – time transport |
Encourage |
No explicit / definitive position |
|
Taxation |
Trans-Tax ( for ALL vehicles ) From Birth to Death ( Scrappage ) |
Green Tax ( but only for OLD vehicles ) After 8 / 15 years of life |
|
When / How often levied ? |
Every Day / Every Hour ( 24 x 7 ) |
Commercial Vehicles > At time of renewal of Fitness
Certificate Private Vehicle > At time of Renewal of Registration
Certificate |
|
Tax at what rate ? |
1 Based
on following SLABS of Trans-Scores computed by NaviC for a given vehicle : 2 ------------------------------------------- SLAB > % Trans-Tax -------------------------------------------- 3 4 01
– 200 > 150 % ( of the BASE
SLAB tax ) · 201
– 300 > 200 % · 301 - 400 > 250 % · 401 - 500 > 300 % ( Base Slab = Current Road Tax ) ---------------------------------------------- Based on “Harm Quotient “ computed by software for each and
every vehicle – every hour of its life |
10 % - 25 % - 50 % Of the current Road Tax |
|
System |
Ø NaviC
satellite & Vehicle-embedded Sensors/Fastag based Ø Totally
Automatic tax deduction Ø Tax
deducted from Fastag installed in each and every vehicle as it leaves factory Absolutely NO HUMAN INTERVENTION ! Ø Will
replace all existing Road-taxes on vehicles. No other tax Ø Could
consider to drop GST too ! |
Ø Totally
Manual / Slow Ø Needing
enormous amount of tracking of a number of parameter of each vehicle , every
day, which is humanly impossible Ø Susceptible
for corruption Ø Huge
burden of implementation on part of State RTOs / Police Depts Ø Enormous
burden of compliance for vehicle-owners |
|
Utilization of Green Tax |
TRANS-TAX will be uniform throughout India
but credited to the State in which vehicle is, at each hour of its life |
Ø The revenue collected from this tax will have
to be sequestered in a separate account and used for tackling pollution, and for States to set up state-of-art facilities for emission
monitoring. |
|
Motivating Factor for Vehicle Owners |
To lower TRANS-TAX liability, people will opt
for vehicles / driving conditions which generate low TRANSCORE, most
of time. This will motivate people to go for EVs / Bicycles and use at
non-peak hours |
To avoid paying GREEN TAX, only thing owners will do is to sell
vehicles to scrap-dealers, but only after 8 / 15 years |
|
Uniformity |
Same Trans-Tax across entire country |
Vehicle taxes differ across States |
|
Reduction in Air Pollution |
Dramatic reduction within ONE YEAR |
Very slow rate of reduction |
|
Effect on Manufacturers |
Great urgency to phase-out polluting Petrol-Diesel vehicles
and switch over to EVs – Hybrids –CNG – LPG – Ethanol |
Tendency to continue with ICE vehicles to safeguard legacy
investments in plant/machinery |
Dear Shri Gadkariji,
While welcoming this ( proposed introduction of GREEN TAX ), I
urge you to “ Go Great
“ !
With regards,
Hemen Parekh / hcp@RecruitGuru.com / 27
Jan 2021
===================================================
COMMENTS :
Davidoff,
Thomas [ thomas.davidoff@sauder.ubc.ca
]
Director, UBC
Centre for Urban Economics and Real Estate
Associate Professor, Strategy and Business Economics Division
Hemen
Thank you for this note. What you propose sounds like an
integrated Pigouvian approach to transport pricing, which I agree would be great.
Regards,
Tom
===================================================
Dear Mr. Parekh,
Thanks for your note, and your interest in our group’s research.
As your proposal falls into the broader philosophy of dis-incentivizing private transport, or more accurately incentivizing the use of public transport, the ideas outlined in your blog are certainly worth exploring.
Of course, this might serve as one of “ a basket of options ” available to us to tackle this rather complex issue.
As you correctly surmise, much of it
depends on the political climate of each region, and the willingness of
the citizenry to undergo some level of immediate hardship in service of longer-term goals.
With regards,
Gourab / Gourab
Ghoshal [http://gghoshal.pas.rochester.edu/ ]
Assistant
Professor [Physics, Computer Science and Mathematics ]
University of Rochester
===================================================
REFERENCES :
https://www.skylo.tech/solutions#telematics_link
Skylo makes it possible
for you to know what is happening across your entire fleet,
making sure you can serve your customers more efficiently.
Track location and movement
in real-time
Know where trucks are at any point with satellite navigation sensors
that act as a vehicle tracking system.
-------------------------------------------------------------------------------------------
BMW, Ford
back development of vehicle 'birth certificates' built on the blockchain
BMW, Ford, and major technology companies have
indicated their support for a new blockchain project to assign "birth certificates"
to vehicles.
Announced on Tuesday, the initiative is focused on developing technologies able to
track a car from its manufacture and beyond, including when the vehicle has changed
hands, its maintenance history, and records of mileage and any past damage.
Blockchain technologies are touted as a way to
create a tamper-proof record of a car's history.
MOBI intends to
create a system that will pull together records from multiple sources to create
a true representation of a vehicle's condition.
"Vehicle registration on [the] blockchain allows formerly disconnected vehicle registration systems
between states and countries to connect using a secure, shared, and trusted
ledger," the company
says
===================================================
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