All the vehicle should be painted in seven different colours and ensure that one particular colour bearing vehicles are off the road on particular specified days, thus redicing the vehicle strength on roads by 15%. People using cars should carry 4 people otherwise luxury tax should be imposed.
Government should relax heavy taxes on oil compaines as it will reduce extra burden from them. Due to extra tax they are bleeding, after collecting heavy taxes govt. is compensating in form of long term bonds that dosent helps to companies for operating profits.
petrol and deisel should be the same, tax extra for deisel luxury vehicles. make 20 lakh and above vehicles even more expensive. ban SUVs, increase public transport. phew the list is never ending!
thats called lack of governance and sitty pretty on their ass. we have to kick them to wake them up
RE:raise prices incrementally and reduce taxes, stop subsidies
by Prem Mohan on May 14, 2008 09:58 AM
India should ban forward trading in crude petroleum all over the world. See how beneficial it has been to ban forward trading in onions. Now it is the farmers who are suffering because of low prices!
Another question arises. When reforms first came about sixteen years ago, we were told that there would be massive foreign investment in large infrastructure projects, power stations, ports etc., Where are these investments? All we have is McDonalds, KFC and some shops selling branded goods.
Every effort at reform has been stymied by the Communists. The article is absolutely right. Reforms must have a legislative basis and foreign companies must be helped to invest and earn profits. It is another matter if we don't want foreign investment.
In 1989, a wag said that we don't want potato chips, we want computer chips. Sixteen years down the road, we have plenty of potato chips but not a single wafer fab. Our production of ICs and electronic components is negligible.
It is a misconception that the goverment is giving subsidy and that the govt owned PSU's are bleeding. It is a blessing in disguide for the Finance minister and the goverment indirectly. How ? It can be expalined this way.. When the crude oil was @ 30 $ per barrel about three years ago, the goverment revenue on it was 40 % of it by way of taxes ( Customs, VAT/Excise etc) i.e. 12 $ Now when the crude has climbed to above 100 $ ( Indian basket) The revenue has increased per barrel to 40 $. What is thst in percentage terms ? A whopping 333% Jump. Mind you that 40 % of the goverment revenue is from the petroleum taxes, Since about 60 % of the requirement is imported. Now tell me who is going to leave this windfall and that too when it can be given away as alms or doles as loan waivers to garner votes in the election year. So this is smart politics but bad economics, since this resources , which the goverment has gathered is not put to fruitfull use in the system to generate more revenue/ income or create assets but is wasted away as alms thereby even disheartening the honest loan re- payers & tax payers.
I completely disagree with the writer saying that Ram Naik has to blame for reforms. He should understand that he is only given powers of APM to oil companies leading to reforms as he is talking about. you should also highlight inefficiency in oil companies causing high cost of production, which is ultimately falling on consumers. you should also highlight failure of successive governments for not working enough on oil discovery. even pakistan has a better oil production in its own territory just near to borders.
RE:me.akarsada
by satish kaushik on May 13, 2008 05:06 PM
High oil price is not because of high cost of production.It is because of manipulations made by oil rich countries and demand-supply scenario.Hard decisions are required to be implemented to curtail consumption of petro products.
The real answer is that no politician (left, right, center) wants to give up control.
Anyway the only solution is to reduce consumption by heavily taxing private vehicle usage. Impose tolls, parking fees, increase insurance costs, etc. Impose very very taxes on high capacity cars. Bio fuels need to be explored thoroughly before opting for them.
