'Vehicle taxation, incentives should be based on energy efficiency'

TKM Vice Chairman Vikram Kirloskar recommends merit-based taxation structure

To realise India’s goals of energy security and countering climate change, the county must broaden its horizon to take a more holistic and systems-based approach on the impact of products on CO2 emission, said Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motor (TKM).

Addressing SIAM’s 61st annual convention on August 25, he said an impact analysis of the `life cycle’ of all products is critical to creating a ‘well to wheel’ environment.

“This will help us address the entire value chain as well as for efforts to reduce, reuse and recycle materials,” he said. “The country must lay equal emphasis on enhancing energy efficiency as we do for fossil fuel substitution. Also, it is important to leverage all technologies as an enabler, ever-evolving and a means to the end.”

 

On the future of mobility, Mr. Kirlosakar said, “For a faster shift to sustainable mobility policies, the country must promote energy efficiency as the basis for determining product taxation, i.e. by adopting a merit-based taxation structure that incentivises consumers to choose more energy efficient appliances, gadgets and vehicles, which were otherwise more expensive due to higher technology costs.”

India has set a target to become ‘energy independent’ by 2047.

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