Lofty goals need hard mettle
Whichever way you look at it, the year’s budget hit where it hurt. But is it a complete no-win?
HIGHER TAXES WILL APPLY ON VEHICLES IN MORE POLLUTED CITIES
TO THOSE WHO CHASE THE THRILL of Driving, four facets from the 2021 Union Budget broadly stood out: the new scrappage policy, a more thorough implementation of the proposed green tax, an increased focus towards the building of highways, and an increase in import duties for vehicle components. So let’s now delve into the details.
We’re already aware the central government has approved a policy of deregistration and scrapping of vehicles over 15 years old. However, not only will the policy come into effect only in April 2022, but it is chiefly aimed at vehicles owned by government departments and PSUs, read: our ageing public buses.
Moving on to the ‘personal vehicles’ bit: the vehicle must pass the prerequisites for the renewal of fitness certificate, which applies when the vehicle is 15 years old or older.
A higher rate of green tax will be levied on vehicles registered in more polluted cities, with considerations for vehicle as well as fuel type. Further, individuals will get incentives to sell (and not dispose outright) older vehicles at prices as per used vehicle rates, while also getting certificates from the particular manufacturer in lieu of a future purchase. The aluminium, steel, copper, plastic and rubber from the scrapped vehicles will be recycled. This will not only help reduce raw material prices for newer vehicles and thus reduce overall costs, but will also increase both employment and earnings for ancillary enterprises. Besides, the government is also mulling the import of scrap vehicles from overseas for breakdown and recycling, no doubt adding to the country’s preexisting raw materials’ roster.
As a fillip to easy transport of goods, the ambitious Bharatmala Project will establish connectivity to far-flung border towns as well as within production hubs. About 3300km of the proposed 83,000km+ highway construction at over `5 lakh crore is already functional, with a further 13,000km slated for completion this financial year, including the 600km highway connecting Mumbai and Kanyakumari, as well as the Delhi-Mumbai Expressway, which will slash travel time from 55 hours to an estimated 25 hours.
Finally, the pinch to enthusiasts: the 15 per cent increase in custom duties for ‘certain auto parts.’ Though we look at it as another needless hit to our collective pockets, it has actually been conceptualised as a way to reduce India’s dependence on imports, while also bolstering indigenous manufacturing power as well as export abilities. And, seeing that brands like Bajaj, Hero Motocorp and TVS already export approximately 50 per cent of their production portfolio, it’s only a matter of time for homegrown technologies to catch up, and with our continued patronage, even dominate!