India levies taxes on transport tariffs for rail freight, while private wagons benefit from a rebate. Taxes go to the State budget, not to the railways, when at the same time Indian railways benefit from State subsidies.
Would India agree that it would be more appropriate, simpler and more transparent to abandon such taxes, leaving these revenues to the railways and cut back on the transfers by the State?
Reply: At present no additional taxes are being levied by the State on tariff for transportation of goods by rail. Busy season surcharge and terminal charges etc. are not taxes but charges which are part of the tariff of Railways. These are flexible charges designed to respond to market trends. As regards the freight rebate to private wagons, it is also part of the freight policy to compensate for the investments made for procuring such wagons.
Has India considered whether carriers should granted ability to fix rail prices/tariffs in a flexible way reacting to changing market situations?
Reply: Ministry of Railways is empowered by the Indian Railway Act with powers to fix tariff rates independently. Though haulage rates for movement of container trains by registered container train operators are fixed by the Indian Railway, the CTOs are given the flexibility to charge tariff rate, for transportation of goods, as per prevalent market situation.
According to the report, foreigners may not operate as a travel agent, tour operator or tourist transport operator. India's GATS commitments allow commercial presence with a 51% equity ceiling.
Could India confirm whether the mentioned limitations do not apply to commercial presence?
