Hike in diesel price, ban on sand and mining activity cited as reasons

The sale of commercial vehicles has drastically plummeted in the city if the available data is any indication.

The Commercial Taxes (CT) Vijayawada-II could collect only Rs. 276 crore on commercial vehicles during 2012-13 as against Rs.365 crore in 2011-12. The CT Vijayawada-II covers Autonagar and other parts of the district where automobile business is concentrated. There is a dip in the sales, sources say, of lorries. The Ashok Leyland and the Tata Motors could sell 6,607 and 8,800 lorries respectively during 2012-13. Their sales were 10,200 and 10,300 respectively in 2011-12. As a result, there is a fall of Rs. 89 crore in revenue.

Various reasons are being attributed by the taxmen and transporters for drop in the sales. The prime reason cited is the steep hike in diesel prices.

The price of diesel was Rs.44.52 per litre in July 2012 and it touched Rs. 51.99 in February 2013. The prices of tyres doubled when compared to last two years, say transporters. The nylon tyres that were available at Rs. 24,000 a set two years ago, now touched Rs. 36,000. The cost of radium tyres shoots up to Rs. 48,000 a set from Rs. 36,000.

The third reason for fall in sale of commercial vehicles appears to be tollgate fee. The transporters used to pay Rs. 2.20 per km earlier on highways. Now they have to shell out Rs. 3.80 per km.

The apex court’s ban on sand and other mining activity has also contributed to fall in the sales. The sand quarrying came to a grinding halt with apex court imposing a ban on it. Lorry owners used to ferry sand from the district to the State capital and other places.


Dip in sale of commercial vehicles May 12, 2014

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