Truck operators seek cut in GST, toll fee, fuel price

The logistics industry, which is stuck with problems, is playing a vital role in the Indian economy. With Union Minister of Finance Nirmala Sitaraman scheduled to present the Budget, the TTOF has forwarded a memorandum, stressing the need for reducing excise duty on petroleum products and rationalise uniform GST, its president JP Joe Villavarayar has told DT Next.

While oil price fell down in 2015, the government had reduced fuel price, but subsequently raised the excise duty. Much to the relief, the Centre promised to bring fuel under GST, but it could not be implemented unfortunately due to the State government’s objection. Moreover, fuel price is on the rise and almost touched Rs 75 a litre for diesel, which is almost 50 per cent of the operation cost.

Further, the fleet owners were finding it difficult to meet insurance premium, which has been hiked unreasonably. Though the Insurance Regulatory and Development Authority of India (IRDAI) allowed general insurance companies to make downward revision to premium amount without any criteria, the insurance companies were not exercising such powers.

Hence, the TTOF has sought the Finance Minister to review the whole issue and revise premium on the logistics industry, which is also facing the burden of toll charges. Owing to frequent increase in toll fee, the operators were destined to increase freight transport costs.

The TTOF also feels that the vehicle scrapping policy needs to be discussed before its implementation. As for hire truck, its 28 per cent GST should be lowered to 12 per cent and GST on automobile tyre and spares needs to be revised by half from 28 to 14 per cent. He also said the RBI is issuing directives at regular intervals on reducing the rate of interest on vehicle loan granted by banks, non-banking and finance companies. But, such benefits were not passed on to customers and hence a mechanism should be brought in for its proper implementation, he said.