Bus Karo: Subsidy and Taxation Framework (Session III)
•Download as PPTX, PDF•
0 likes•242 views
The document analyzes the current taxation framework for public bus transport in India. It finds that taxes make up a significant portion of operating costs for bus operators, ranging from 11-19% on average. Direct taxes and fuel taxes on bus operators have increased over time for many city and state transport authorities. Removing these taxes could significantly improve the financial positions and viability of many public bus services. The principles of transport subsidies to maintain affordable fares while not financing inefficiencies are also discussed.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Bus Karo: Subsidy and Taxation Framework (Session III)
Similar to Bus Karo: Subsidy and Taxation Framework (Session III) (20)
More from WRI Ross Center for Sustainable Cities
More from WRI Ross Center for Sustainable Cities (20)
Recently uploaded
Recently uploaded (20)
Bus Karo: Subsidy and Taxation Framework (Session III)
- 1. A product of WRI Ross Center for Sustainable Cities ALOKE MUKHERJEE, AMIT BHATT, UMANG JAIN BUS-BASED PUBLIC TRANSPORT IN INDIA: THE CURRENT SUBSIDY AND TAXATION FRAMEWORK
- 2. PRESENTATION STRUCTURE – TAXATION Understanding the basket of taxes faced by public bus operators Previous research on taxation with observed trends Overview of WRI’s tax research Recent trends in direct and fuel taxation of public bus operators Tax variations across states
- 3. OPERATOR FINANCIAL POSITIONS (2014-15) *Note: DTC’s net revenue was INR -39,914 million in 2014-15; this axis was capped at - 15,000 million to improve readability.
- 4. OPERATOR FINANCIAL POSITIONS (2014-15)
- 5. THE TAX/DUTY REGIME FOR PUBLIC BUS TRANSIT Average Cost Breakup for 48 Public Bus Operators - 2015
- 6. THE TAX/DUTY REGIME FOR MASS-RAPID TRANSIT Wealth Tax FringeBenefitsTax Metro Rail Systems
- 7. THE TAX/DUTY REGIME FOR PUBLIC BUS TRANSIT Stamp Duty Property Tax Excise Duty Customs DutyVAT/Sales TaxEntry Tax Octroi MotorVehicleTax Passenger Tax Service TaxLabour CessMunicipalLevies State Transport Undertakings/Transport Corporations
- 8. THE TAX/DUTY REGIME FOR PUBLIC BUS TRANSIT Stamp Duty PropertyTax State Transport Undertakings/Transport Corporations Excise Duty CustomsDuty VAT/SalesTax EntryTax/OctroiExcise Duty CustomsDuty VAT/SalesTax EntryTax/Octroi MV Tax PassengerTax Ad.Tax ServiceTax LabourCess MunicipalLevies
- 9. THE TAX/DUTY REGIME FOR PUBLIC BUS TRANSIT Stamp DutyPropertyTax State Transport Undertakings/Transport Corporations Excise Duty CustomsDuty VAT/SalesTax EntryTax/Octroi MV Tax PassengerTaxAd.Tax ServiceTax LabourCess MunicipalLevies
- 10. PREVIOUS RESEARCH ON TAXATION Association of State Road Transport Undertakings 2005 The poor financial performance of STUs in spite of their improving physical performance is more due to the impact of the policies relating to motor vehicle tax, concessions and universal service obligations, unviable fare structure, and fuel price. The total [Motor Vehicle] tax paid in 2004-05 by 36 STUs … was about Rs.1,516 crores which represented 11% percent of their traffic revenue. …the States have usually treated STUs as an important source of revenue while at the same time expecting them to provide inexpensive transport services to the people.
- 11. PREVIOUS RESEARCH ON TAXATION Kharola & Tiwari 2008 …of the total annual operating cost of a public transport system, about 19.02 per cent goes as taxes to the union and state governments. The existing taxation structure is inequitable and not congenial for growth of bus-based public transport systems.
- 12. PREVIOUS RESEARCH ON TAXATION Mahalingu & Madegowda 2011
- 13. OVERVIEW OF WRI’S TAX RESEARCH A more recent (post-2011) look at tax trends Variations in tax across states Best practices in taxation, both India and globally The effects of reducing taxes on public operators 10 operators surveyed; 5 city and 5 state operators City: BEST, BMTC, CSTC, DTC, MTC State: APSRTC, GSRTC, KSRTC, RSRTC, UPSRTC Focus on direct and fuel taxes Direct taxes: 2011-2015; fuel taxes: 2013-2015
- 14. TAX VARIATIONS ACROSS STATES Motor Vehicle Tax % FANCY
- 15. DIRECT TAX TRENDS City Operators
- 16. DIRECT TAX TRENDS State Operators
- 17. DIRECT TAX TRENDS Financial Position of City Operators after Direct Taxes Sl. Operator Revenue Position 2011 2012 2013 2014 2015 1 BEST 2 BMTC 3 CSTC 4 DTC 5 MTC
- 18. DIRECT TAX TRENDS Financial Position of City Operators without Direct Taxes Sl. Operator Revenue Position 2011 2012 2013 2014 2015 1 BEST 2 BMTC 3 CSTC 4 DTC 5 MTC
- 19. DIRECT TAX TRENDS Financial Position of State Operators after Direct Taxes Sl. Operator Revenue Position 2011 2012 2013 2014 2015 1 APSRTC 2 GSRTC 3 KSRTC 4 RSRTC 5 UPSRTC
- 20. DIRECT TAX TRENDS Financial Position of State Operators without Direct Taxes Sl. Operator Revenue Position 2011 2012 2013 2014 2015 1 APSRTC 2 GSRTC 3 KSRTC 4 RSRTC 5 UPSRTC
- 21. FUEL TAX TRENDS City Operators
- 22. FUEL TAX TRENDS State Operators
- 23. FUEL TAX TRENDS Financial Position of City Operators after Fuel Taxes Sl. Operator Revenue Position 2013 2014 2015 1 BEST 2 BMTC 3 CSTC 4 MTC
- 24. FUEL TAX TRENDS Sl. Operator Revenue Position 2013 2014 2015 1 BEST 2 BMTC 3 CSTC 4 MTC Financial Position of City Operators without Fuel Taxes
- 25. FUEL TAX TRENDS Sl. Operator Revenue Position 2013 2014 2015 1 APSRTC 2 GSRTC 3 KSRTC 4 RSRTC 5 UPSRTC Financial Position of State Operators after Fuel Taxes
- 26. FUEL TAX TRENDS Financial Position of State Operators without Fuel Taxes Sl. Operator Revenue Position 2013 2014 2015 1 APSRTC 2 GSRTC 3 KSRTC 4 RSRTC 5 UPSRTC
- 27. FUEL TAX TRENDS Excise Duty Revisions
- 28. COMPOSITION OF TAXES – DIRECT/FUEL City Operators
- 29. COMPOSITION OF TAXES – DIRECT/FUEL State Operators
- 30. WHO GETS THESE TAXES? City Operators
- 31. WHO GETS THESE TAXES? State Operators
- 32. LET’S GET AMBITIOUS City Operators Sl. Operator Revenue Position 2013 2014 2015 1 BEST 2 BMTC 3 CSTC 4 MTC
- 33. LET’S GET AMBITIOUS City Operators Sl. Operator Revenue Position 2013 2014 2015 1 BEST 2 BMTC 3 CSTC 4 MTC
- 34. LET’S GET AMBITIOUS State Operators Sl. Operator Revenue Position 2013 2014 2015 1 APSRTC 2 GSRTC 3 KSRTC 4 RSRTC 5 UPSRTC
- 35. LET’S GET AMBITIOUS State Operators Sl. Operator Revenue Position 2013 2014 2015 1 APSRTC 2 GSRTC 3 KSRTC 4 RSRTC 5 UPSRTC
- 36. THE PRINCIPLE OF A TRANSPORT SUBSIDY Maintain (or improve) service quality at affordable rates Not to finance inefficiencies in the system Inevitable across public transport worldwide
- 37. THE PRINCIPLE OF A TRANSPORT SUBSIDY Technical Fare – User Fare Total operational cost Number of passengers Average fare paid per passenger
- 38. A product of WRI Ross Center for Sustainable Cities THANK YOU