Monday, September 26, 2022
HomeBusinessWill the central government reduce the excise duty on petrol and diesel...

Will the central government reduce the excise duty on petrol and diesel to give relief to the common man from inflation?

Tax On Petrol Diesel: The Central Government has put the responsibility of making petrol and diesel cheaper on the shoulders of the states. Whereas the central government knows that the financial condition of the states is not good due to the implementation of GST first and then the corona epidemic. Despite this, Union Petroleum and Natural Gas Minister Hardeep Singh Puri has appealed to the states to reduce VAT on both the fuels to give relief to the consumers from expensive petrol and diesel.

Tax increased by 200 percent on petrol and 530 percent on diesel in 8 years
But the big question arises that why the central government itself is not reducing the tax on petrol and diesel. Remind you, before November 4, 2021, the Modi government was charging Rs 32.90 per liter excise duty on petrol and Rs 31.80 per liter on diesel. Since coming to power at the Center in 2014, whenever the prices of crude oil fell, the Modi government increased the excise duty. Before the Modi government came to power, during the tenure of the UPA government, excise duty was charged on petrol at Rs 9.20 and diesel at Rs 3.46 per liter. But the Modi government increased the excise duty on petrol by Rs 23.7 and diesel by Rs 28.34 per liter. In view of the elections in five states, the government reduced the excise duty on petrol by Rs 5 and diesel by Rs 10 from the day of Diwali. Despite this, the Modi government is charging Rs 27.90 excise duty on petrol and Rs 21.80 on diesel. That is, 200 percent more on petrol and 530 percent more on diesel than the time of the UPA government.

Why doesn’t the central government take the initiative first?
From January 2022, when crude oil prices rose due to the Russia-Ukraine war, crude oil reached above $130 per barrel. After which the government oil companies have increased the prices of petrol and diesel by Rs 10 per liter. That is, the government took back the relief given on Diwali, but the government did not reduce the excise duty on petrol and diesel. And the Petroleum Minister is asking the states to reduce VAT. The question arises why the central government itself does not initiate it by reducing the excise duty so that it can set an example in front of the states to reduce VAT. The hands of the states are also closed because the means of raising revenue with the states are limited. It should also be remembered that when the Central Government cut the excise duty on petrol and diesel on November 4, 2021, after that the states also reduced VAT.

Inflation will be lower by reducing tax
The common man is likewise troubled by the backbreaking inflation. The data of retail inflation, which came to the highest level of 17 months, is testimony to this. If the central government reduces the excise duty on petrol and diesel, then it will curb inflation to some extent and there will be pressure on the states to reduce VAT.

- Advertisement -
MOBILE

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News