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Sunday, October 11, 1998

Durai moots 20% tax on all automobiles

ENS ECONOMIC BUREAU  
NEW DELHI, Oct 10: The union surface transport minister M Thambi Durai, on Saturday proposed levy of a 10-20 per cent tax on all automobiles to be utilised for development of roads.

The minister who was addressing the 28th meeting of the transport development council also suggested that additional funds could be generated through deposits from the public on high interest rates. He said that a rapid increase in the manufacture of vehiles had led to an acute traffic intensity and strained the resources. "In order to ensure improvement and better maintenance of our roads, it is envisaged to generate funds from the vehicle manufacturers themselves," he said.

Stressing the need for developing the road infrastructure at a faster pace in order to sustain the economic growth, the minister admitted that the existing road infrastructure was simply not adequate to cope with the demand that would be unleashed as a result of economic growth. "The quality of infrastructure needs to be substantially upgraded tofacilitate efficiency in the transportation system. The problem has to be tackled at various levels the central government, state government as well as at the level of the local governments," he said.

The minister said that the government is considering creation of a dedicated organisation for planning and management of expressways. He said that work was required in all areas such as improved funding of the sector, technological upgradation of construction and maintenance.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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