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Rediff.com  » Business » Truckers threaten to continue strike, govt refuses to budge

Truckers threaten to continue strike, govt refuses to budge

Source: PTI
Last updated on: October 01, 2015 20:52 IST
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Apex transporters body AIMTC will continue its strike on Friday, disrupting supply of goods to various parts of the country after the government refused to scrap the existing toll system.

"We will continue our strike tomorrow as the government has failed to pay any heed to our demand. The electronic-toll collection system as promised by the government is not practical," All India Motor Transport Congress President Bhim Wadhwa told PTI.

Demanding scrapping of the existing toll system and one-time payment of taxes and simplification of TDS procedure, truckers proceeded on an indefinite strike this morning.

Wadhwa said AIMTC has 87 lakh trucks and 20 lakh buses and tempos across the country under its fold and is not ready to withdraw the strike unless some practical solution is made.

While supply of essential commodities like milk, vegetables and medicines have been kept out of the purview of the strike, its impact was seen in Rajasthan, Tamil Nadu, Punjab, Haryana and Chandigarh, among other places.

While appealing to the All India Motor Transport Congress (AIMTC) to call off the strike earlier in the day, Road Transport and Highways Minister Nitin Gadkari said the toll system can't be scrapped.

"It is up to them to continue their strike. The government cannot scrap toll. We have already assured to implement electronic tolling system pan-India by December. I appeal to them to call off the strike," Gadkari told PTI.

Another truckers body, All India Transport Welfare Association (AITWA) has decided to keep away from the strike.

Gadkari said the government is committed to delivering good highways to transporters and is serious that they do not have to wait at toll plazas.

"E-tolling project of the government is a failed concept... Even their pilot project has failed. The partnering banks like ICICI and Axis Bank too have distanced themselves from the project," Wadhwa said.

"Our indefinite strike is successful as per reports coming from all parts of the country," he said, adding that "the strike has caused about Rs 1,500 crore (Rs 15 billion) losses to truckers and over Rs 10,000 crore (Rs 100 billion) loss to the government on the first day". 

Wadhwa said one of their demands is to bring TDS provisions on transport trade in the Pre-Finance Act 2015, and Finance Minister Arun Jaitley has assured them to call a meeting with Chairman, CBDT, on this.

AIMTC leader Charan Singh Lohara said: "We have stopped new bookings and delivery of goods as the truckers numbering around two lakh in the region comprising Punjab, Haryana and Chandigarh have joined the strike today."

Gadkari assured truckers that the government would provide a wide network of good roads with no delays after the electronic toll system in which toll will be collected electronically through chips fitted in the vehicles at toll plazas.

AITWA President Pradeep Singhal said they will refrain from any strike.

AIMTC said it is not against toll, but the toll collection system, and has demanded barrier-free movement of vehicles as well as one-time collection of taxes.

On the other hand, the Indian Foundation of Transport Research and Training (IFTRT) said AIMTC's suggestion to have fixed annual toll was not rational.

"AIMTC suggestion to have fixed annual toll fee of Rs 30,000 for a truck on national permit and Rs 10,000 for intra-state permit vehicle needs examination as proposal is highly flawed and irrational," Coordinator IFTRT SP Singh said.

"IFTRT has analysed the true issues of TDS on transport contractors and their misunderstanding of the facts relating to amended Section 194C (6) of the Income Tax Act, 1961, effective 1st June 2015 in which the exemption to truckers from TDS deduction has been extended to transporters owning not more than 10 trucks." 

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