But rather than giving such comments, governments should be more practical to take administrative steps to tax more for big cars. It is a known fact that people buy big cars more to exhibit their richness and status symbol more than their actual utility. Even car-manufacturers cash such craze by having huge per-unit profit-margins on big cars as compared to mass-selling small cars. Government should also cash such craze of elite society for show of their richness in society. Big cars defined according to ex-factory price should be taxed at 100-percent excise duty to discourage their production and use. Even other taxes like road-tax, toll-tax, parking-fees etc should be double than the normal for big cars. This will not only curb fuel-consumption but also will make car-manufacturers to concentrate and compete for manufacture of small cars. Read the full report here.
Source: Madhu Agrawal, Central Chronicle, New Delhi.
