Aurangabad, Feb 2 (PTI) The Union Budget announcement about a voluntary scrapping policy for old and unfit vehicles is a good one but there must be more clarity on its financial benefits to owners in subsequent purchases, a trucker outfit functionary said in Aurangabad on Tuesday.
Fayyaz Khan of Aurangabad Goods Transport Association, which is part of All India Motor Transport Congress, the nationwide umbrella body of truckers, told PTI the government must give some tax benefit when the person who opts for the policy purchases his next truck.
He said the trade is already facing losses due to rise in tyre and fuel prices, with rates of diesel going up from Rs 66.47 in March last year, just as the lockdown set in, to Rs 82.52 as on Tuesday.
'We welcome the vehicle scrapping initiative. However, we want more clarity on financial benefits to those who opt for it. Currently, trucks less than 10 years old run on inter-state routes, those between 10 and 15 on state roads, and those above 15 on short fixed trips, mostly carrying farm produce,' he explained.
'We have to spend some 76 per cent of the amount we get from a truck trip. This was 62 per cent in January, 2020.
The other outflows are 12 per cent for wear and tear, and 12 per cent for toll, salaries and other operational expenses,' he said.
Tyre prices have increased by 3 per cent due to supply issues, which in turn has brought down profit margin for dealers from 4-5 per cent to almost nil, claimed tyre dealer Ashish Chauhan. PTI AW BNM BNM