Truckers strike in India today
Posted by: Chirag Jain on: July 1, 2008
Its 1 July today and we start the month with news that truckers in Karnataka are calling an indefinite strike to raise their voice against a hike in sales tax on diesel.
Now truckers are intelligent too. Their argument is that sales tax should be done away with as it is not constant across the country. People might pay more in Punjab than Haryana. They have instead recommended putting VAT (Value Added Tax) as it levied equal across the country.
They feel the pinch of toll tax too. The toll tax, they argue, is based on two factors : price per km and number of vehicles. Naturally, they are inversely proportional -if one rises, the other must fall. But not in this case -because
even as vehicles increase, government has increased toll tax from Rs. 1.35 per km to Rs. 2.40 per km. Thats really unfair for truck driver and transport agencies.
Its time for the main part - How do we get affected?
- Logistics wouldn’t move, people won’t get their stuff on time and there will be huge delays in courier services and allied services.
- This may also mean added loss for the government due to higher transportation costs they’ll have to provide to make up the strike.
- Less vegetables, fruits, FMCG products will hit the market. In fact, last time I went to the neighborhood market, I couldn’t find any fresh fruits at all, leave alone fruits at high prices!!
- Most manufacturing companies will be hit hard because they’ll want quick transportation of goods/supply parts or inventory demands.
- This 5th point is only for me - my Amazon books are going to get delayed by a couple of weeks maybe….i’m praying that they reach on time.
The truckers’ strike in India is mainly due to high inflation levels, bigger taxes levied by the govt and the ongoing oil crisis. Strikes in other countries are also to follow. As you read this, French truckers are fighting for the same cause - citing their oil prices being higher than other neighboring countries.
What do you think of the latest truck strike? Is it just an attraction-seeker or truckers are really facing the axe? Let us know either by voting in our poll or commenting at our comments page.
6 Responses to "Truckers strike in India today"
1 | Mike Harmon
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
2 | Chirag
Thanks Mike.
I’ll keep writing more and so will everyone out here! We promise to make it worthwhile to visit this blog once a day or sign up for rss feeds/email subscription.
3 | Shan
Hi Chiraq
Truckers are just one part of the country that is showing an opposition to the rising costs. As everyone of us know, the major component of the oil prices including Diesel in India is the tax. The tax component adds up to nearly 50% of the fuel cost. And when the prices increase, the tax amount also increases proportionally.
It is high time government looks firmly on itself and its performance. Two things they need to do: One reduce tax to tolerable levels. There is no need for such heavy taxation any more. Earlier, immediately after independence, there was a dearth of capital and the government scooped up money to become the major investor in industries.
Government is no more the major investor in the country. There is no need why so much of tax money has to be collected. Government has to cut on its expenses and bring down taxes post haste. If they fail to do it, then we are heading for a major show down.
4 | 'motley'
Rightly stated by Shan.
Its the poor and oppressed truck drivers who feel the brunt of rising interest rates, inflation, oil crisis and the rest of the things mentioned in the article.
5 | Truckers are calling off their strike « Bizzonomics’s Weblog
[...] Now truckers are intelligent too. Their argument is that sales tax should be done away with as it is not constant across the country. People might pay more in Punjab than Haryana. They have instead recommended putting VAT (Value Added Tax) as it levied equal across the country….[ ] Read the rest of the great post here! [...]
6 | Kartikeya
Dear Chirag, et. al,
It’s great to see your blog. I’m one of the founders of the Indian youth climate Network (IYCN) and we’ve got a blog of our own: “What’s with the Climate?” (http://whatswiththeclimate.org). I welcome any posts that you would like to make on our blog (cross posting rather) that are econ-climate/environment related. Anything related to energy counts.
We are a nascent movement but have a membership that is several thousand strong and growing. It’s aim is to engage youth and young professionals in a dialog on climate change and to develop consensus on the need to take action in India. I would like to you to join this movement and add your voice in the debate through our blog.
Please contact me if this interests you: kartikeya@delhigreens.org
Best,
Kartikeya
PS-I’m hoping the blog (which is a community of writers from or of south asian origin from all parts of the subcontinent and the world) will become the number one independent media source on climate change in the region.
Chirag Jain
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