Coimbatore: PMK State Assistant Secretary Ashok Srinithi has said that toll collection centers that have been in use for more than 10 years must be closed down.
Coimbatore: PMK State Assistant Secretary Ashok Srinithi has said that toll collection centers that have been in use for more than 10 years must be closed down.
A notice issued by him reads, "The practice of collecting toll for the usage of a passage has been in use even 2,700 years ago. According to history, this was in vogue during the 7th century, during the reign of King Ashurbanipal who was the emperor of the world's largest empire. This practice of collecting toll through toll collection centers is still prevalent in many countries all over the world. The infrastructure of a country, particularly the roads and the highways are a major factor in the growth of the country. That is why roads are called 'the lifelines of the national economy'.
The economies of developing countries do not have adequate funds for the laying of new highways. During such situations, the highways are built first and then the cost of the road is retrieved through the collection of toll. This is a common process. Once the capital cost is collected, the toll will be cancelled. In India, the construction of highways are funded through three different ways- Public funded, BOT (Build,Operate, Transfer) and OMT (Operate, Maintain, Transfer).
Out of the toll collection centers in India, 10%, that is, 48 toll collection centers are present in Tamilnadu. Out of this, 19 are public funded, 26 BOT and one MoRTH (Ministry of Road Transport and Highways). In the past 20 years, Rs.37,000 crores has been spent on the laying of the 48 highways. Out of this, Rs.15,687 crores has been spent for the laying of the 26 highways by the private companies through BOT. It is unfair that three types of taxes are being levied on the public for using these roads.
First, as per the Central Road Fund Act (2000) a Road Cess is being levied. This is usually collected to construct and maintain the highways. For every litre of petrol/ diesel that we buy Rs.10 is being collected as Road cess.
Case 1: There are 5,000 fuel stations in Tamilnadu. According to the information by Suresh Gong, General Secretary, Consortium of Indian Petroleum Dealers, on an average, every month 1 lakh litres of fuel is filled at the fuel stations. The annual calculation for this reveals that 900 crore litres of fuel is being sold each year. This works out to a revenue of Rs.9,000 crores of Road cess each year from TN. (Since last May, the TN government has increased the VAT on petrol and diesel and had informed that an additional Rs.2,500 crore revenue would be generated.)
Case 2:The TN government collects a VAT of Rs.13 on petrol and Rs.9.62 on diesel. Each year a minimum of Rs.10,000 crores is generated as revenue through this. Road tax or Motor vehicle tax is levied on new vehicles. This generated an income of Rs.6,019 crores, last year and an income of Rs.6,898 is expected to be generated this year. This road tax is also collected for the laying and maintenance of roads.
Thirdly, toll is collected at all the 48 toll collection centers. So there are three kinds of taxes that are being imposed on the public. Similarly, there is no transparency in the collection of toll at these toll centers and many irregularities are reported. Some of them have been collecting toll for more than 15 years now.
The Aathur toll gate, Chennasamudiram toll gate, Krishnagiri toll gate, Chengalpattu toll gate can be taken as examples. If the traffic/ PCU are considered and calculated with a minimum tax, then the capital cost could have been easily retrieved in seven to 10 years.
However, even after 25 years these toll collection centers still collect tolls. Private companies must not trouble the people and make money for themselves. Similarly, 21 toll collection centers that have been in use for a long time must be closed down or the toll amount should be reduced by 50 %. By doing so, the price of essentials will go down. If this happens then the people can save more money. They will be able to buy their necessities during the COVID-19 times. Many crores of people will benefit through this.
With this in mind, on behalf of the PMK I request the Central and State governments to close down the 21 toll collection centers."