Truckers usurp Sales Tax reduction on Diesel as rentals stay firm

New Delhi, Jun 21 (UNI) Reduction in sales tax on increased portion of latest Diesel price by various state governments across the country over last week or so has made no dent in form of any reduction in truck rentals.

Truck rentals had gone up by eight to ten per cent immediately after announcement of diesel price hike on June 5 instant as against meager five to six per cent impact on truckers' freight structure, a Indian Foundation of Transport Research and Training statement said.

However, the 20 paise to 30 paise per litre fall in diesel price due to reduction in sales tax by various states had turned out to be windfall profit as truck rentals for last seven days continued to increase steeply, although, truck rentals should have climbed down in an open market situation.

The buoyancy in the manufacturing sector and increasing export and import trade was helping the transporters to hold on to freight hike without reflecting the reduction in sales tax on diesel.

After undertaking an one-day token strike on June 13 to seek roll back of latest diesel price hike, the transporters were now threatening to go on indefinite nationwide strike in the near future.

After having jacked up truck rentals spontaneously by eight to ten per cent, disproportionate to increase in diesel price, the transporters had now no locus standi to usurp the reduction in sales tax by 20-30 paise announced by various states, the statement said.

It seemed that transporters were hiding their 'real agenda' by using the 'fig leaf' of diesel price hike as the industry, trade and commerce chambers had already taken into account a diesel price hike and consequent impact on truck rentals, it added.

UNI IP ARB DB2008