Auto, tax unions say reduction in CNG VAT not enough, need 20% cut
The state government on Friday announced a 10 per cent reduction in VAT on CNG, but the auto and taxi unions in the city are not happy. They want at least a 20 per cent reduction in the price.
According to taxi and autorickshaw drivers, the operation cost has gone up by at least 25 per cent in the last 13 months; hence, the reduction of 10 per cent in VAT is not going to affect much.
The kaali-peeli taxi operators want either CNG price to be reduced by at least 20 per cent or raise the minimum base fare (for 1.5 km) to Rs 30 from the existing Rs 25.
After the first 1.5 km, passengers now pay Rs 17 per km. Taxi operators now want this to be increased by Rs 3 per km to make their daily trips viable.
“In the last 13 months, CNG prices increased by around Rs 16 per kg in the Mumbai Metropolitan Region ( MMR). Hence, reduction in cost by Rs 3-4 per kg is a good move but not sufficient,” said Indra Narayan Sharma, who has been driving a taxi in Mumbai since 1989.
Similarly, Rakesh Verma, who has been driving an auto-rickshaw in the western suburbs for the last 30 years, said, “They increased the price of CNG several times, but no one thought about the family life of rickshaw drivers. On Friday, the government announced a reduction of VAT, and everyone started asking, ‘Fair kam nahi karoge?’. What’s going on? Before asking such questions, people need to think about our operational costs and other expenses.”
Shashank Rov, the president of Mumbai Auto Rickshaw Taximen’s Union, said that the government should provide CNG for taxi and rickshaw drivers at a subsidised rate. The price has climbed up from Rs 49.40 per kg in February 2021 to the current Rs 66 per kg.
AL Quadros, leader of Mumbai Taximen’s Union, said, “I don’t think it will prove to be helpful for taxi operators. We witnessed several price hikes in CNG in the recent past; hence, we need either substantial reduction in price of CNG or increase in fare.”
Thumpi Kurian, general secretary of the Mumbai Rickshaw Men’s Union, said, “Due to the recent hike in the price of CNG, our operational costs have increased. Currently, the minimum fare of rickshaws is Rs 21, which needs to be increased to Rs 23. After the first 1.5 km, the fare at present is Rs 14.20 per km, which needs to be increased up to Rs 15.48 per km.”
Asked about the reduction in VAT, Kurian said, “This will be effective from April 1, 2022. Who knows by the time the price of fuels, including CNG, may increase.”
KK Tiwari, leader of the Swabhiman Taxi and Rickshaw Union, said, “It’s purely a political announcement, keeping in mind the upcoming municipal elections. The state government wants attention of the taxi and rickshaw operators, but we know it’s like a ‘jhunhjuna’ (toy).”
In the last 13 months, CNG prices increased by around Rs 16/kg in the Mumbai Metropolitan Region. Hence, reduction in cost by Rs 3-4 per kg is a good move but not sufficient –Indra Narayan Sharma