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R.Y. Narayanan

Coimbatore , Sept. 30

THE State Lorry Owners' Federation-Tamil Nadu (SLOF-T) has appealed to the Centre and State governments to put a freeze on the sanctioning of new lorry permits in view of the burgeoning number of vehicles that has lead to an unhealthy competition impacting freight rates.

It also requested the governments to levy sales tax on diesel not on a percentage basis but on the basis of per litre of diesel, so that the consumers pay for only the actual increase in diesel price.

A resolution passed at the annual meeting of SLOF-T at Namakkal pointed out that import duty and Central and State levies constituted a large chunk of the diesel price and these were charged on a percentage basis. This resulted in a situation that whenever the base price was increased, the tax component contributed to a further increase in price up to even 50 per cent.

The federation felt that if the taxes on the fuel were levied per litre basis, only the actual increase in the price of diesel would have to be borne by the consumers. Hence, the association requested the Centre and State governments to levy all taxes on per litre basis rather than on percentage basis.

In another resolution, SLOF-T said the increase in the number of trucks has resulted in an unhealthy competition to get loads that has led to lower freight rates. This created a situation where the transport operators were not able to carry on with their business. Hence, the federation appealed to the Centre and State governments to put a freeze on issuing fresh truck permits.

The federation said most of the insurance companies in Tamil Nadu were not willing to provide third party insurance cover to the vehicles. Moreover, at the time of issuing new policies, and at the time of renewal, the insurance companies charged a higher premium in the name of loading. While the insurance companies extended third party cover to influential, large fleet owners, this was refused to small and single vehicle operators, the federation said, and it wanted the Centre and the IRDA to take steps to ensure that the third party insurance cover was provided by the insurance companies to all operators. It was decided to approach the insurance authorities on this issue.

In another resolution, SLOF-T said in an effort to curb the menace of over loading of vehicles a watch on vehicles involved in over loading would be kept from October 18.

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