In response to the recent increase in the Value Added Tax (VAT) on diesel by Rs 3, the Baddi-Barotiwala-Nalagarh (BBN) Truck Union and the Bilaspur Truck Operators Co-operative Sabha (BDTS) in Himachal Pradesh have announced a surge in freight charges. The decision has left the transportation industry and businesses grappling with the potential impact on prices and overall costs.
The BBN Truck Union wasted no time in implementing the new rates, increasing freight charges for small trucks by 90 paise per kilometer and for large trucks by Re 1.5 per kilometer. The revised rates went into effect from Saturday, affecting the transportation of goods across the region.
Meanwhile, the BDTS has followed suit and decided to raise freight charges by 1.41 percent, in accordance with their predetermined formula. The increased rates are set to be implemented from Sunday morning. Consequently, the freight for single-axle trucks will rise by approximately 15 paise per kilometer per tonne, while multi-axle trucks will see an increase of 13 paise per kilometer per tonne.
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Understandably, the hike in freight charges has drawn mixed reactions from various stakeholders. Pradeep Thakur, the General Secretary of the Bilaspur Truck Operators Co-operative Sabha, explained that the increase was based on a fixed formula, resulting in a 1.41 percent rise in the freight fare.
The Truck Union Nalagarh has taken a different approach by entering into a Memorandum of Understanding (MoU) with BBNIA. As per the terms of the agreement, if the price of diesel increases by Re 1, the fare for small vehicles will increase by 30 paise per kilometer, while the fare for 18-tonne vehicles will increase by 50 paise per kilometer. Truck Union General Secretary DK Kaushal clarified that the fare adjustment aligns with the provisions outlined in the MoU. However, the repercussions of these changes are expected to be felt not only by truck operators but also by consumers, as the increase in freight charges may lead to higher prices for building materials and other goods.
The rise in transportation costs has also sparked concerns in the Apple industry. As various truck unions are looking to increase the freight.
As truck unions and industry representatives engage in discussions and negotiations, the broader implications of these freight charge hikes remain uncertain. Businesses and consumers alike will be closely watching how these adjustments in transportation costs will impact the overall economy of the region.
The diesel VAT hike and subsequent freight charge increase highlight the delicate balance between government policies, transportation costs, and the affordability of goods and services. The coming weeks will determine the extent of the impact and whether any potential relief measures or compromises can be reached between truck unions and other stakeholders affected by the changes.
