Value Added Tax fuelling loss

The revised Value Added Tax (VAT) burden on petroleum and diesel products recently in the state has come as a shocker, as the price rise has affected the transport sector  and the public in all aspects. Auto and taxi owners say that the price rise has added fuel to the fire in their steadily- dwindling business, while motorists are claiming that the price hike will burn a hole in their pockets.  

Commuters also complain that drivers of many autorickshaws and taxis started collecting extra fares and they justify it by pointing to sky-rocketing prices of such products. 

“I know that whenever there is a hike in the prices of petrol and diesel, auto drivers will ask for extra fare by simply using this hike to justify their demand. I took an auto from Pachaiyappa’s college bus stop to Central railway station and the driver wanted Rs 100. 

Since I know that the distance of destination is around 6.5 km, I argued with the driver pointing out the distance, but he asked me if I knew  that prices of  petrol and diesel have been increased,” said M Arun Renganathan, a bank employee. He added that the government should think twice before it  raises price. S Balabubramaniam, General Secretary, Autos and Taxi Owners Association, South Chennai, affiliated to CITU, told DTNext , “We usually demand Rs 5 to Rs 10 extra, whenever there is a hike in the prices of petrol and we need to spend extra around Rs 50 a day due to price rise in the fuel stations. It is also a fact that many commuters keep arguing with the auto drivers on fare, but they should understand about prices of petrol going up intermittently.” Both commuters and auto drivers are largely affected due to hike, he noted. 

However, Metropolitan Transport Corporation (MTC) officials ruled out the possibility that bus fare would be raised. “Till now, we have not received any communication from the government to hike up bus fare and chances of a rise are very remote,” said V Krishnamurthy, Managing Director, MTC. He admitted that they have to bear fuel  expenditure. 

Owners and drivers of private cab services also feel the pinch due to hike petrol and diesel products. “If such a price hike  continues intermittently, it will be difficult for us to survive. 

We already staged a protest in the city citing minimum increment. In such a situation, increasing price rise will burden us more and it will affect our livelihood,” said V Prakash, driver of private cab. 

Similarly, M Nijalingam, president, Private Lorry Owners Association (South Chennai) says, “The skyrocketing diesel prices have paved the way for increasing prices of essential commodities and there is a chance for increasing price for water, vegetables and other products soon.” 

Since lorry played main role in exporting and importing main products and they face loss, to a large extent, when prices of petrol and diesel are increased, he added. 

A Saravanan, a worker in a private hotel in Aminjikarai says, “I stopped coming by bike as I cannot afford the price of petrol and I come to work by bus.” It may be noted that prices of petrol and diesel in the state went up by Rs 3.78 and Rs 1.70 respectively, following the state government revising the VAT on these products.