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Vol. IX Issue. 2
Jaipal Reddy's diesel tax proposal 'highly flawed': Praful Patel

26 June 2012

June 20, 2012.Terming Oil Minister Jaipal Reddy's proposal of levying additional duty of up to ' 2.55 lakh on diesel cars as "highly flawed", Heavy Industry Minister Praful Patel has written a letter to Finance Ministry saying such a move was "unjustified". He was referring to Reddy's recommendation to the Finance Ministry suggesting a hike in excise duty on diesel vehicles ranging between ' 1.70 lakh and ' 2.55 lakh to make up for subsidised fuel being used in personal vehicles. He said additional taxes on diesel vehicles was not consistent with the ministry's policy and initiatives for developing the auto sector. The Finance Ministry has been mulling over imposing more levy on diesel vehicles, a move which may discourage consumption of subsidised fuel by personal vehicle owners.

      
 
 
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