New Delhi: Two major transport industry bodies, All India Transporters Welfare Association (AITWA) and All India Motor Transport Congress (AIMTC) have lashed out at the government saying the current policies are hurting the sector and making businesses environment unviable. Stating that high GST rate, Rs 2 cess on diesel announced in Budget, hike in presumptive tax and increase in insurance have hurt transporters severely, the two associations said and added that their members have put on hold purchasing of new trucks as the current business environment is unviable and many truckers are staring at loan defaults.
"It is a collective decision of our members as the current situation is not favourable for transport trade. Vehicles are not a profitable business anymore," AITWA National President Mahendra Arya said. He said starting from August, major transport associations across different cities, including Delhi, Mumbai, Kolkata, Bengaluru have decided not to purchase any new trucks.
He said due to high GST of 28%, initial cost has gone up and not only that many small transporters are bearing the burden directly as they don't get credit on it. AIMTC ex-president and Chair of core committee Bal Malkit Singh said, "no one is buying new vehicles. From the past six months many people are not buying at all." He further said there has been a severe slump in the industry and in the past many months many of the transporters are unable to buy new vehicles because the existing fleets have become unviable.