Budget 2021 falls flat on Transporters Sector’s Expectations

In contravention to the popular expectations of the 20 crore road transport fraternity of India, the Budget 2021 has fallen flat.

1. No tangible respite has accrued to the common man and the road transport sector from the rising fuel prices.

No excise duty cuts are announced instead agri and infra cess is loaded on petrol and diesel, which is also being extracted from us. Otherwise reduction in Excise Duties would have helped in reduction of fuel prices.

There is no mention of bringing petrol and diesel under GST ambit.

The road transport sector is trampled under the inflation stoked by fire-spiralling inflation and the transport operations rendered non-viable by the rising fuel prices.

2. After facing the tough pandemic period and adverse fallout induced by lockdowns on transport sector, it hoped that the Government will provide some relief at least on our long pending issues of TDS and Presumptive Tax, which are irrational and does not support ground realities.

We have amply represented to the Government and through our Nodal Ministry, MoRT&H on the issues of TDS revocation and rationalization of Presumptive Tax for small operators does not find any mention in the current budget, which would have eased this financial strain on this sector.

3. Increase in duty rates on components of vehicle from 10% to 15% ie frames and forks, wheel rims & spokes, hubs, brakes, saddles, pedals & crank gear, etc will add burden on the transporters, by making vehicle and spares costly.

4. First time in the history a scrapping policy related to the transport sector is announced by the Government in the Budget. It is just to legitimatize it, too is not going down well with the fraternity. It is unilateral, coersive and is to help automotive sector and OEMs. The final policy document is not shared with stakeholders or the affected parties or public or any comments and concerns invited for.

The Lacs of small operators across the country will lose their livelihood and employment. What the Government has done to ensure the sustenance of lacs of poor truckers who will get displaced by this unilateral policy?

The NGT puts 10 years as age for vehicles as polluting, MoRTH is saying 8 years. Is there any scientific study for it or for linking age to pollution? It is baseless.

Only Fitness and road worthiness should be the criteria.

BS IV and BS VI are non polluting and costly vehicles. Then why its age is restricted at 10 years in Delhi NCR, Metros & other Cities (like 8 years in Mumbai)?  What is the relevance of such policies when NGT orders supersedes it? Why PUC is required for such vehicles?

Whether levying of Green Tax and restricting age of helps in controlling pollution in Delhi. Delhi people still have to bear worst pollution whose main cause is unbridled vehicular population, dust, factories and burning of farm waste in neighbouring states which no Govt is seriously concerned… except Increasing Tax.

There has been no sensitivity to the woes of the road transport sector, which is the most important link of the supply chain. It cannot sustain due to high taxation and rising fuel prices.

The callous approach of the Government to the 20 crore fraternity associated with road transport sector to the wall. There is acute angst and resentment among the transport fraternity across the country and a strong reaction to it from the transport fraternity of India, which is clamouring for an immediate showdown.