Delhi chief minister for smaller cars to ease traffic

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MADHU AGRAWAL

22 January, 2010

No one can deny Shiela Dixit's version that big cars occupy much more road and parking space as compared to small cars. But rather than giving an advisory-note, she should be more practical to take administrative steps to tax more for big cars.

DELHI CHIEF Minister has rightly called for encouraging small cars and discouraging big cars to ease out ever-increasing aspect of traffic and parking facilities in cities.

No one can deny Shiela Dixit’s version that big cars occupy much more road and parking space as compared to small cars. But rather than giving an advisory-note, she should be more practical to take administrative steps to tax more for big cars, apart from sending an official note to Union Finance Ministry suggesting extra-heavy imposition of excise-duty on big cars.

It is a known fact that people buy big cars more to exhibit their richness and status symbol than their actual utility. Even car-manufacturers cash such craze by having huge per-unit profit-margins on big cars as compared to mass-selling small cars.

Government should tax such craze of elite society, who want to show their richness in society. Big cars defined according to ex-factory price should be taxed at 100-percent excise duty to discourage their production and use. Even other taxes like road-tax, tool-tax, parking-fees etc should be double than the normal for big cars. This will not only curb fuel-consumption but also will make car-manufacturers to concentrate and compete for manufacture of small cars.

However for benefit of car-users, government should induce standardisation of common accessories like tyres and batteries so that same parts may be used in small-car segments produced by various car-manufacturers to bring down accessory-cost due to their production in extra large numbers in single size and specification as far as possible.