Cut VAT, do not raise bus fares

The Lok Satta Party on Wednesday requested Chief Minister N Kiran Kumar Reddy to ensure that the State-owned Road Transport Corporation (RTC) does not raise fares in the wake of the Union Government’ hike in diesel price.

A Lok Satta Party delegation comprising Katari Srinivasa Rao, V Laxman Balaji, P Bhaskara Rao and P Rohit Kumar called on Mr Kiran Kumar Reddy at the Camp Office and submitted a memorandum.

Pointing out that more than a crore of people use RTC services daily, the Lok Satta leaders told the Chief Minister that any hike in fares would impose a heavy burden on poor and middle class commuters.

The Government can go to the rescue of the loss-making RTC in a number of ways, they represented to the Chief Minister. The Government, for instance, can reduce the 22 percent VAT it imposes on diesel, like some of its counterparts in the country.

It can pass on the increase in revenue from VAT on diesel to the RTC. It can reduce the motor vehicle tax on RTC buses and clear the long-pending dues to the RTC. It can implement the recommendations made by IIM, Ahmedabad, and improve RTC’s revenue.

The Government should promote public transport and not private transport in the interests of environment and fuel security, the LSP said in its memorandum.

The Lok Satta leaders wanted the Government to promote production of biofuels to ensure energy security at a time fossil fuel reserves the world over are dwindling.

Brazil, for instance, has emerged as a leader in production of ethanol from sugarcane. Ethanol blended with petroleum serves as a motor fuel. Ethanol production benefits farmers by ensuring a higher price for sugarcane and the country by saving foreign exchange on import of petroleum products.

Talking to media, Mr Katari Srinivasa Rao expressed the hope that the Chief Minister would heed the practical suggestions made by the delegation.