GOVERNMENT ROLE IN TRANSPORTATION
1] Government plays a very important and crucial role in the transportation business or system.
2] They provide basic infrastructure to the nation like roads, railway tracks, ports, container yards, cranes at ports, public warehouses etc.
3] Government is conducting an inspection, verification of goods and other storage by establishing customs authority.
4] However govt. can also charge a tax on the goods and services provided by distributer, They charged various taxes like octroi, road tax, other duties such as customs, export trade, excise tax, sales tax whether it is state or central, then VAT that is value added tax, service tax etc.
5] If someone is shirking or avoiding their taxes then the government should take decision to frame a procedure for the payment of that taxes and duties with the penalties for that person.
6] Government can give restriction or prohibitions regarding the carrying of goods and services in specific modes of transport like Inflammable products such as petrol, diesel etc.
7] Govt. is licensing the transporters and provides a commission. That is they permit the transporters to make trade on a law basis.
8] Government can fixed or charged the freight rates for the govt. vehicle or carrier like trains, buses etc.
The Government has announced a road policy and a set of guidelines for development of highways, including a series of measures to attract private investment in the sector, both foreign and domestic. Key initiatives in this sector include:
The government has permitted 100 per cent foreign equity (up to US$ 306 million) in construction and maintenance of roads, highways, tunnels etc.
In order to share project risks, the government, through the National Highways Authority of India (NHAI), can acquire equity stakes up to 40 per cent in build-operate-transfer (BOT) projects.
Promoters are permitted to charge toll tax on certain projects. These toll taxes are indexed to the wholesale price index.
Road projects are entitled to corporate tax holidays for 10 years.
The government also facilitates investors with feasibility study, land acquisition, resettlement and rehabilitation, etc.
Earlier, most of the private sector investments were through the build-operate-transfer schemes. Now many of the recent projects are being bid on a toll collection system to finance the project. This new scheme has generated considerable interest among private investors and operators.
The Government of India has studied various strategies adopted by ports world-wide to address similar issues facing ports in India. The government envisages commercialization/ privatization/ modernization of major existing ports. These are expected to result in technological upgrades and overall improvement of performance levels, of the ports.
Today the Government of India has recognized the need for privatizing the national carriers although the procedure for this is yet to be decided. Recently, changes have been made in the Airports Authority of India Act in order to permit the privatization of the two Metro airports of Delhi and Mumbai. The Government has also taken an important step in setting-up a high-powered Committee, whose task is to examine the inconsistencies in the aviation sector and make recommendations for its rapid improvement. This document takes into account these positive developments and examines important questions often raised in the context of improving civil aviation in India
1] Government plays a very important and crucial role in the transportation business or system.
2] They provide basic infrastructure to the nation like roads, railway tracks, ports, container yards, cranes at ports, public warehouses etc.
3] Government is conducting an inspection, verification of goods and other storage by establishing customs authority.
4] However govt. can also charge a tax on the goods and services provided by distributer, They charged various taxes like octroi, road tax, other duties such as customs, export trade, excise tax, sales tax whether it is state or central, then VAT that is value added tax, service tax etc.
5] If someone is shirking or avoiding their taxes then the government should take decision to frame a procedure for the payment of that taxes and duties with the penalties for that person.
6] Government can give restriction or prohibitions regarding the carrying of goods and services in specific modes of transport like Inflammable products such as petrol, diesel etc.
7] Govt. is licensing the transporters and provides a commission. That is they permit the transporters to make trade on a law basis.
8] Government can fixed or charged the freight rates for the govt. vehicle or carrier like trains, buses etc.
The Government has announced a road policy and a set of guidelines for development of highways, including a series of measures to attract private investment in the sector, both foreign and domestic. Key initiatives in this sector include:
The government has permitted 100 per cent foreign equity (up to US$ 306 million) in construction and maintenance of roads, highways, tunnels etc.
In order to share project risks, the government, through the National Highways Authority of India (NHAI), can acquire equity stakes up to 40 per cent in build-operate-transfer (BOT) projects.
Promoters are permitted to charge toll tax on certain projects. These toll taxes are indexed to the wholesale price index.
Road projects are entitled to corporate tax holidays for 10 years.
The government also facilitates investors with feasibility study, land acquisition, resettlement and rehabilitation, etc.
Earlier, most of the private sector investments were through the build-operate-transfer schemes. Now many of the recent projects are being bid on a toll collection system to finance the project. This new scheme has generated considerable interest among private investors and operators.
The Government of India has studied various strategies adopted by ports world-wide to address similar issues facing ports in India. The government envisages commercialization/ privatization/ modernization of major existing ports. These are expected to result in technological upgrades and overall improvement of performance levels, of the ports.
Today the Government of India has recognized the need for privatizing the national carriers although the procedure for this is yet to be decided. Recently, changes have been made in the Airports Authority of India Act in order to permit the privatization of the two Metro airports of Delhi and Mumbai. The Government has also taken an important step in setting-up a high-powered Committee, whose task is to examine the inconsistencies in the aviation sector and make recommendations for its rapid improvement. This document takes into account these positive developments and examines important questions often raised in the context of improving civil aviation in India