Levying of cess on diesel vehicles is regressive: Ford India

The act of levying a certain amount of cess on the diesel cars is definitely not a precise or exact approach but there could be a slight hike in the rates of diesel in order to earn this revenue according to a peak official of the Ford India Limited on this Thursday. Michael Boneham, managing director as well as the president of the company said that they are conscious enough with a perpetual hope of looking for a reliable and constant framework of legislation. This practice of taxing the diesel vehicles does not fall at place with their beliefs and they find in quite unfair. According to them it isn’t an appropriate approach at the time when the rates of interest are high already. Taxing the diesel vehicles at this moment is no less than a regressive step. In accordance to him, charging a tax by the government on the cars powered by the diesel engine would in turn increase the cost of the vehicles by a huge amount of Rs. 80,000. It is certainly an unjust price to pay. Boneham also said that the government would be left with the only option of increasing the price and rates of diesel in order to earn parallel revenue by an amount of 75 paisa.

Levying of cess on diesel vehicles is regressive: Ford India
He had been hoping that the automobile industry would be logging with a higher rate of growth this year and eventually the rates of interest would fall. In the mean time, Ford India, Indian contributory of the US auto maker Ford Motor Co, had launched in all forty five dealerships across various 35 cities. By the virtue of the fresh openings, the company of Ford India managed to strengthen the pan-India network of it’s to a figure of sales of 230 along with the service outlets spread all over in 120 various cities. Bonehom told that it has been planned and strategized as that in every 10 days a new sales outlet would be launched by the company. He also told that the plan of the company in order to expand its plant of the diesel engine had already been pipe lined and was perfectly on track which latest would reach completion by the month of April. The Ford India has planned to invest a colossal amount of $72 million with an idea of increasing its capacity from that of 250,000 units to reach the target of 340,000 units on a yearly basis.

Michael Boneham

There are several economic as well as political compulsions by the government that would act as prevention in allowing the sale of diesel at the driven price of the market. Thus this act of levying an additional charge is done keeping in mind the intension of increasing the cost of the cars that are run on diesel. Since energy is something that falls in the category of the resources that are scarce therefore in that case increment of the tax on the diesel driven cars is somewhat in order.

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