Indian Government Revenue IMAGE.
Pitching against the idea of imposing 5 percent levy on diesel cars, auto major GM said Re 1 per litre hike in diesel prices would fetch more revenue than from the tax and would also address the issue of market distortion.
GM Vice President, Corporate Communications, P Balendran said, All original manufactures have recommended that right approach will be to increase diesel prices in small doses and reducing petrol rates gradually so that market distortion is addressed and the sector performs well.
We as well as Society of Indian Automobile Manufacturers (SIAM) has recommended, a hike in diesel prices by Re 1 per litre as it would help government earn Rs 6,000 crore revenue, Balendran said.
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