The Hindu : Hike in road tax worries maxi-cab users

Online edition of India's National Newspaper
Monday, Apr 07, 2003

Southern States

Southern States - Tamil Nadu-Chennai

Hike in road tax worries maxi-cab users

By P. Oppili

CHENNAI April 6 . Maxi-cab service users in the city are keeping their fingers crossed that the hike in the road tax for this class of vehicles does not translate into a heavy commuting burden.

In the last four years road tax for maxi-cabs was hiked three times. While the earlier hikes were nominal and did not have such a "pincer" effect on the operators as well as the public, the present revision is seen as a crippling blow to those dependent on this mode of transport, such as school-going children and office-goers.

In April 1994, the tax for maxi-cabs was Rs. 1,500 per quarter (Rs. 125 per seat). Shortly afterwards the same year, the rate was enhanced to Rs. 1,800 per quarter (Rs. 150 per seat). The rates were not hiked till June 1999, when it was made Rs. 2,100 per quarter at the rate of Rs. 175 per seat. Again in 2001, the tax was increased to Rs. 3,000 per quarter at the rate of Rs. 250 per seat. Opposing the hike, a section of operators in the State obtained a court injunction and continued their business. However, cab operators in Chennai accepted the hike and continued to pay the amount. Now, the rate was fixed at Rs. 6,000 per quarter at the rate of Rs. 500 per seat.

Having suffered several fare hikes, including on account of fuel price rise, the maxi-cab users stand to pay more as whatever the rate of hike may be, the burden will promptly be passed on to the consumers, feel cab users.

The rapid growth of maxi-cabs, which can be seen operating as stage carriages from 9 p.m. on most city roads, including the arterial Anna Salai, is attributed to the slow and steady decline of public transport initiatives from the Government.

Neither has the policy of private sector involvement in meeting transport demand been firmed up, nor investments made in the State sector, which would lead to fleet augmentation and provision of more services. The lack of policy initiatives has led to unregulated growth of both maxi-cabs and call taxis, with many revenue implications for the Government.

For the commuters, however, it is a question of retaining travel options. "If the Government refuses to reduce the tax hike, then the maxi-cab owners are left with no option but to abandon the vehicles and switch over to some other business," says the vice-president of the Tamil Nadu Tourist and Maxi-cab Owners and Operators Association, K. Kadirvel.

With the Metropolitan Transport Corporation failing to operate adequate services commensurate with the increasing demand, many residents of outskirts switched over to maxi-cabs to commute to their offices. This mode of transport received good response from working women, as it provided a trip to and from office that was both safe and dependable.

It is not only the maxi-cab users who are adversely affected by the hike, but also different tradesmen involved in the maintenance of the cabs. Electricians, door repair mechanics, blacksmiths, radiator mechanics, body tinkering and servicing mechanics are dependent on cab vehicles, point out the operators.

The maxi-cab operators representatives say they are not totally opposed to annual tax hikes, provided it was nominal as was done during 1994 and 1999.

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