Tuesday, May 19, 2020

VEHICLES - THE TICKING 'TIME-BOMB'

The number of Vehicles running in the Roads of India are increasing day by day.  The affordable schemes have made it possible for many people to live their dream of owning a vehicle.  Once, a status symbol, owning a vehicle has now become a necessity.  The fully loaded public transport and the time it takes to snail through its route to reach its destination has forced many commuters to purchase their own Vehicle to save travel time.
 
Owning a vehicle also gives them the flexibility to venture out with their family at their own convenience.  The Automobile industry employs lot of people and it augurs well for a nation that is looking for more employment opportunity for her citizens.  The Profit that these companies earn and the returns it gives to the Investors makes them a top pick in the Stock Market.  
 
This might sound as a great achievement reflecting the growth of the Indian Economy.  But the inconvenience it causes and impact of it will be known in the very near future. 
 
Increased Vehicle sales leads to increased dependency on Imported Crude adding pressure on Export-Import balance and the Currency.  Increased Vehicle sales brings in more vehicles on the already congested roads.  Increased Vehicle also increases the pollution levels in the atmosphere.  To add to this is the current trend of owning more than more than one Vehicle.  There seem to be no end to this.  
 
It would be wise to follow the Singapore Model to tackle this issue.  The Government should consider levying higher tax on Vehicles.  This will discourage people from buying new Vehicles.  It is true that the public transport system is not in good health.  But it is well and truly compensated by the flood of Call Taxis running across the roads of India.  
 
For the existing vehicles on Road, two things should be considered by the Authorities.  The first thing is to charge a usage fee payable annually, per vehicle.  These amounts are to be used for improving the infrastructure.  The second thing is to ban the use of Vehicles of age, say may be 15 years.  This would take most of the Vehicles off the road immediately.
 
The transition might be difficult but something that is achievable.  There will be a loss to Owners of vehicles that are more than 15 years of age.  The Government can force the Vehicle Owners to promote a buyback offer or offer tax rebate for those who are forced to surrender their vehicles at the time of transition or give cash compensation to the Owners at present market value.  All these might be one-time burden on the exchequer but will make the roads more commutable.
 
If the number of new Vehicles keep increasing in the present rate, very soon we will reach the saturation point.  It will be a catastrophe.  This is the worst that we could leave for our future generation.  The time bomb is already ticking.  It is time something sensible is done to control this.
 
(The above article was written as an Editorial for publication in Jul. 2019 issue of PRINCE'S VOICE - A Community eMagazine.)

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