I think I may be a minority of one that believes that petrol should be priced high in India. When a few years ago a friend sent a sheet highlighting how petrol is priced in Pakistan, nepal and few other really badly managed economies, i had asked him why he would want to be like them? Since then i have not received such emails. I am not sure he stopped believing it. But this is my argument on why Petrol should be priced high.
India has a population of 1.2 billion or 1200 million. No. Pan card holders 120 million or 10% of population. No of individuals paying taxes 31 million or 2.5% of population.
No. of personal vehicles on road : 2 wheelers 45 million. 4 wheelers 10 million
of the tax payers 10 million are registered as business/professionals who get to expense out their petrol bills ( a 33% discount??)
So if the majority of vehicle owners in this country are saying they are below taxable limit but can afford to run a vehicle, why is a consumption tax in the form of a duty a problem. No body is asking us to travel by a large car or a heavy mobike. No body is stopping us from car pooling. Unlike the income tax where you work hard and pay higher taxes, here you only pay for what you use.
If those of us who believe in luxury of personal vehicles want to use vehicles run on fossil fuels, we should pay for it. Europe discourages personal vehicles by taxing both cars and gas, Singapore taxes vehicle ownership, and i believe they are doing the right thing.
Partisan politics by the politicians is visible in how someone as a minister can run a ministry down to losses, use taxes to fund it and yet today yell and scream against it.
I am assuming that people who know me are more intelligent and articulate. That though they complain of the price hike, they do understand the politics around it. This is my way of checking on the other arguments.
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