Why encouraging car-production when roads are already over-burdened

Kashmir Times. Dated: 8/12/2019 1:10:55 AM

Dear Editor,
It refers to media-reports that central government is not inclined to cut GST-rate in cars despite being worried about steep fall in car-demand leading to shutting down of many car-showrooms and decreasing production of cars by manufacturers. Evidently any cut in GST-rate for cars will open flood-gate for such demands on other commodities.
Central government should even not think of any other way out to bail out car-industry from crisis of demand-cut like asking banks for easy lending to car-sector. Any such step will be disastrous creating more Non-Performing-Assets NPAs in time to come because demand-increase for cars cannot be there with overall heavy loss of turn-over in all trade-activities.
Instead dealers and manufacturers of cars should better switch over to other industries and trade like manufacturers of tobacco-products did anticipating ban on such products any time in future.
Decreasing car-sales should rather be taken as blessing in disguise because of roads and parking-sites being already heavily over-burdened. Instead central government should impose cess on big and luxury cars so that cars with ex-factory price of say rupees ten lakhs and above may have double taxation than for cars with ex-factory price lower than rupees ten lakhs to discourage production of big cars occupying more space on roads and parking-sites.
--Madhu Agrawal
Dariba, Chandni Chowk
DELHI 110006 (India)

 

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