Fuel price politics has heated up with the BJP taking to the streets to push opposition-ruled states to cut tax on fuel.
In Punjab, where elections are due, the Congress government has reduced the levy, in other non-BJP ruled states, there has been a flurry of backroom discussions to refute the BJP’s statement that value-added tax, additional duty and levied by cess. States are responsible for high fuel prices.
BJP workers protested in Delhi, West Bengal, Kerala, Rajasthan and Chhattisgarh and demanded state governments to reduce VAT on petrol and diesel.
Meanwhile, Punjab has reduced the prices of petrol and diesel by ₹10 and ₹5 respectively.
“Punjab is a different matter. A cess of ₹2,050 and ₹0.10 per liter as Urban Transport Fund and ₹0.25 per liter as Special Infrastructure Development Fee has been levied on one kiloliter of petrol in the state. Value-added tax on petrol is 24.79 per cent and an additional 10 per cent tax on VAT is also added on each litre.
“Similarly, on diesel, the cess is ₹1,050 per kilolitre. Also ₹0.10 per liter as Urban Transport Fund and ₹0.25 per liter as Special Infrastructure Development Fee. VAT is 15.94 percent and there is an additional tax of 10 percent on VAT. The government is facing elections soon. That’s why they may have taken a political decision (to reduce taxes).
“But the matter is not the same as in other states,” said a top opposition leader who initiated talks with various opposition-led governments. business Line.
firm stand
But in other provinces the opposition is not ready to bow down so quickly.
The Andhra Pradesh government issued an advertisement stating that the Center collected ₹3,35,000 crore as central excise duty on petrol and diesel, but distributed only ₹19,475 crore as the state’s share and also argued That the Center collected ₹2,87,500 crore as cess. and surcharge to avoid sharing it with the states. Telangana Chief Minister K Chandrasekhar Rao on Sunday said the state has not increased any tax on petrol and there is no question of reducing any.
Others in the opposition were still discussing ways to counter the BJP narrative.
The consensus was that the issue of additional duties would certainly be taken up during the upcoming winter session of Parliament.
Sources from opposition parties told business Line That the stand taken by YSRCP and TRS has given strength to the opposition camp.
‘No justification’
Kerala Finance Minister KN Balagopal, who in 2014 introduced a statutory resolution in the Rajya Sabha against levying additional excise duty, told reporters in Thiruvananthapuram that there was no justification for imposing such high cess and surcharge.
He said that this is a violation of Article 271 of the Constitution, which should be used only in the event of national calamity or urgency.
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