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The car industry

Smog and mirrors

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Booming diesel car sales, propelled by big sops, pose serious public health hazards, besides being unfair on other fuel users. Time to remove these sops and increase taxes, argues Anumita Roychowdhury.

The current buzz on proposals for an additional tax or cess on diesel cars has clearly ruffled many a feather in the country's auto industry. Such a tax hike would spoil the party after all, as so many growth dreams appear to hinge on the sops that subsidise diesel prices in India. The figures speak for themselves: despite recession blues, diesel cars clocked 34 per cent growth last year. But the cost of supporting their profits, though crippling, is being generously borne by the government and oil companies. What's more, public health costs do not even figure in diesel's balance sheet.
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Reader's opinion (1)

Parikshit BhandekarFeb 12th, 2012 at 11:51 AM

Nice informative article

 
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