The All India Motor Transport Congress (AIMTC) is a non-political and non-profit organisation representing the road transport sector. The organisation has collaborated with the government during crucial initiatives. In its budget proposal, the AIMTC makes several recommendations to enhance the viability of the sector: I.
Status of ‘specific segment’ The road transport sector (both cargo and passenger segment) is an essential services provider. It deserves the status of ‘Specific Segment’. Diesel, accounting for 60% of input costs, and tolls (14%) constitute a significant portion of the expenses.
The sector faces challenges in accessing working capital loans despite being subjected to advanced tax payments. II. Bringing diesel under GST AIMTC suggests uniform diesel prices across the country under GST to reduce logistics costs and support the manufacturing sector.
III. Reduction in GST on essential and non-luxury items AIMTC advocates for a reduction in GST on non-luxury items related to the transport sector like trucks, tyres, spares, third-party premium, etc. IV.
Removal of restrictions on imports of tyres The continuous upward trend in tyre prices, triggered by restrictions on imports, is adversely affecting the economic viability of the truck operating business. Domestic tyre manufacturers are capitalising on this by pricing their products at a premium. This pricing behaviour, characterized by cartelisation and price-fixing among major companies, leads to profiteer.