News Release Details
Fuel tax to speed up MRTS in the works
New Delhi 06-Jul-2007
The urban development ministry has mooted a fuel tax on the lines of gas tax in the US. The ministry would soon discuss the plan with petroleum and finance ministries as well as state governments 10 impose a lax of up lo 30 p per litre. The revenue generated through the levy would be pumped into the proposed Ks 5,000-crore National Transport Revolving Fund that would be used to finance a state-of-the-art mass rapid transit system in the country. The US federal gasoline tax as of 2005 was 18.4 cents per gallon. The gasoline tax in various states ranges from 10 cents to 33 cents, with an average 22 cents per gallon. "We have to see various aspects of such a tax before we go ahead. Participation from states is also necessary for success of the policy," Urban development secretary M Ramachandran said. The ministry is in the process of preparing a Cabinet noise to the effect. The ministry also wants a perform a neebnked scheme for disbursal of transport funds for slates. The states coordinating with the Centre on the tax would gel funds from the revolving fund. "The money could be used for various transport development purposes such as introduction of new bus fleet, metro rail systems and modernization of transport systems," a source said. At present, an education cess of 3% and highway cess of I % are levied on both petrol and diesel. The urban development ministry believes the government is in dire need of funds to boost public transport in the country. "We would ask the slates to subsidies traveling charges for public transport and compensate the loss by charging cess on fuel," he said. The money would also be spent on horticulture and setting up of street furniture and pedestrian facilities.
New Delhi 06-Jul-2007
The urban development ministry has mooted a fuel tax on the lines of gas tax in the US. The ministry would soon discuss the plan with petroleum and finance ministries as well as state governments 10 impose a lax of up lo 30 p per litre. The revenue generated through the levy would be pumped into the proposed Ks 5,000-crore National Transport Revolving Fund that would be used to finance a state-of-the-art mass rapid transit system in the country. The US federal gasoline tax as of 2005 was 18.4 cents per gallon. The gasoline tax in various states ranges from 10 cents to 33 cents, with an average 22 cents per gallon. "We have to see various aspects of such a tax before we go ahead. Participation from states is also necessary for success of the policy," Urban development secretary M Ramachandran said. The ministry is in the process of preparing a Cabinet noise to the effect. The ministry also wants a perform a neebnked scheme for disbursal of transport funds for slates. The states coordinating with the Centre on the tax would gel funds from the revolving fund. "The money could be used for various transport development purposes such as introduction of new bus fleet, metro rail systems and modernization of transport systems," a source said. At present, an education cess of 3% and highway cess of I % are levied on both petrol and diesel. The urban development ministry believes the government is in dire need of funds to boost public transport in the country. "We would ask the slates to subsidies traveling charges for public transport and compensate the loss by charging cess on fuel," he said. The money would also be spent on horticulture and setting up of street furniture and pedestrian facilities.