The implementation of Service tax on Rail freight has been
deferred six times now and is due for implementation from April 1.
If it is not deferred then Rail freight users may have to
brace for another round of hike with effect from April 1, after addressing the
recent rise in distance based charges with effect from March 6.
The Indian Railways has brought in a double digit freight
rate hike across all commodities barring container train operators and iron ore
exporters.
The exact rate of hike varies depending on weight and
distance. Going by the average distances for which the Railways moved commodities
in the first 11 months current fiscal, the basic rate hikes on some key commodities
are coal (22 per cent), cement (26 per cent),
fertiliser (28 per cent) & petro products (23 per cent).
So, according to Industry experts, to spare customers from
taking yet another hit, the Finance Ministry has to defer the implementation of
service tax on rail freight traffic again.
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