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Tax reform helps Indian truck drivers go the extra mile

Tax reform helps Indian truck drivers go the extra mile

MUMBAI: The Indian government’s Goods and Services Tax (GST) has brought cheer to the logistics industry, as trucks need to undergo fewer stops at checkpoints to pay various taxes, which used to vary from state to state. Logistics sector representatives have said after the GST was launched on July 1, 2017, the average distance covered by a truck in India rose to 400-450 kilometers per day, from 300-350 kilometers, Press Trust of India reported.

Before the tax was implemented trucks had to stop at checkpoints and each stoppage meant a loss of nearly five hours. In addition, the drivers had to face harassment from tax officials. So, launching the GST reduced the time taken to make deliveries to customers.

Transport operators claim that fewer stoppages also brought down their maintenance costs for vehicles by up to 30% and the distance they got from fuel also improved by 10-15%. Industry experts believed that all these changes would ultimately benefit the consumer.

In India, it is primarily trucks that supply essential commodities, household goods and medicines across the length and breadth of the country, while the railway network caters to supplying raw industrial materials such as coal, iron, cement, mineral oils and foodgrains.