Seeking a more FDI friendly policy, the top executive of General Motors India said on Tuesday that the government must have consistency in framing guidelines and not resort to short-term measures like a so-called ‘diesel tax’.
“What we expect from the upcoming
Budget is that there should not be diesel tax,” President and Managing Director Lowell Paddock said.
Supporting industry body SIAM's (Society of Indian Automobile Manufacturers) view that only one per cent of diesel consumed in India is used by personal passenger vehicles, he said the ideal way to address the issue is to deregulate the fuel.
There have been calls from various quarters to tax diesel cars saying that the subsidised fuel has been benefiting the affluent.
Paddock, however, said such a move was uncalled for, considering the benefits of diesel technology in terms of environment friendliness and overall benefit.
He said there must be “consistency in the policy” in order to attract more investments in India.
Several auto companies, including Ford India, have stated that their business plans for India could be impacted if any surcharge on diesel-run passenger vehicles –or ‘diesel tax’ – is imposed.
“There should be a foreign direct investment friendly environment,” Paddock said, adding the company has so far invested $ 1 billion in India.
He also expressed his agreement with other automobile companies in India that have stated that a lack of clarity on diesel pricing has prevented them from investing further. Paddock said other issues like GST, flexible labour laws and managing interest rates must also be addressed in the Budget.
Source : profit.ndtv.com