Reddy bats for total exemption of excise duties on buses

Calling for strengthening of the bus network system in the country, Union Urban Development Minister S Jaipal Reddy today batted for total exemption of excise duty on buses to improve their quality and promote their use among commuters.

''Excise duties should be reduced to zero percent on the buses as taxes have been found to be contributing a significant share of the costs and the states too should respond in the same way,'' he said addressing the Conference on Urban Mobility and JNNURM here. He said though former Finance Minister P Chidambaram had agreed to a four per cent cut (from 16 to 12 percent) in the last budget, there should be a reduction to zero per cent, provided the states too respond. Coming out in support of the Bus Rapid Transport System, he said it was the best option for 80 per cent of people of the country who do not own cars. Public roads should not be allowed to be hijacked by car owners, he said. Citing the example of London, where 50 percent of transport burden is borne by the buses, despite its premium tube service (Metro), he mooted for high quality city bus services to motivate commuters to take to buses.

He said nine cities are implementing the BRTS, which is a crucial tool to provide smooth and affordable facility to the commuters.

About Delhi, he said it was initially having some teething problems which could be sorted out.

The Minister also said the states are setting up a dedicated Urban Transport Fund to meet urban transport requirements.

For capacity building, the Ministry planned to establish four centres of excellence in such academic institutions like CEPT, IIMs, IITs and the like.

As urban population is officially being projected at 538 million by 2021, it is likely to pose a serious challenge to urban transport system. BRTS is one of the systems that the Government was banking on.

Stressing on the need for a change in mindset to steer people away from a personalised transport to public transport, the Minister said keeping the interests of the pedestrians and cyclists should be at the core of all urban infrastructure and transport projects.

Also, aligning the land use and urban planning with the transport needs of the people was important. ''Builders go about developing townships without keeping in mind the potential transport requirements.''

-- (UNI) -- 03DI22.xml

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