Lorry Owners’ Association has condemned the State Government’s move to increase value-added tax on petroleum products to 25 per cent. The association president, C. Sathiah, said that the new move would lead to 20 per cent hike in transportation charges.
He wondered how the State Government that has been condemning the Centre for revising the price of petroleum products once in 15 days, could effect a hike on its own.
The additional burden on fuel would result in a lorry incurring around ₹ 400 to ₹ 500 for every 100 km journey. Mr. Sathiah pointed out that the price hike has come close on the heels to the Transport Department increasing the fees for lorry permit, fitness certificate, driving licence by around 400%
The association said that already 40% of the 4.25-lakh trucks in the State were rendered idle over lack of business.
Premium for vehicle insurance are bound to be increased by 400% by April 1 that would further lead to the fares of all passenger and cargo vehicles going up.
Mr. Sathiah said that the South Indian Lorry Owners’ Association that would meet on March 11 would decide on indefinite strike by trucks if the State Government did not roll back its decision, he added.
