Budget 2012: Government should encourage 3 wheelers industry, says Vijay Kedia, Atul Auto Ltd.

Vijay Kedia, Director, Atul Auto Ltd.

Though there is a long list of expectation on the occasion of union budget 2012-13 from the government like every year, but 'for every action there is an equal and opposite Govt. program.'


Also Check: Budget 2012 at ET | Union Budget | Rail Budget 2012 | Budget News


In short we expect that 2% excise duty should not be raised especially in Three wheelers as 3wheeler is the cheapest and safest mode of transportation in the world.

Any hike in Excise will be passed on as we are already reeling under cost pressure. It will result in higher inflation. We advocate that Tax on diesel vehicles should not be raised as it is a pure fuel and government is spending huge sum in bringing awareness for Green Energy.

Raising taxes on diesel will not bring any substantial revenue to the government. Three wheeler is the most fuel efficient vehicle in the world and therefore it should be encouraged. We expect that Three wheeler vehicles (Passenger and commercial both) purchased on loan will be given benefits on the interest they bear.

A 3 wheeler gives an average of 35 km per litre against an average of 15 to 20 km per litre by four-wheeler used for the same purpose.To save on rising petroleum cost 4 wheeler transportation should be banned in small cities and towns.