Congress's P Chidambaram hit out at the government over rising prices of auto fuels
New Delhi:
Congress leader P Chidambaram today criticised the government over petrol and diesel prices, saying the "tax burden" on petroleum products has become an issue of "people versus the government".
The former finance minister tweeted, "Every rupee cut in tax on petrol/diesel will result in LOSS of Rs 13,000 crore says government. Every rupee tax on petrol/diesel will result in BURDEN of Rs 13,000 crore say the people."
He said the Modi government's claim that it has electrified all villages in the country was not true as the UP had already electrified 94 per cent of the villages by October 2013, long before Narendra Modi became the Prime Minister.
Raising the issue of petrol and diesel price hike, he said it increases the burden on people. "Whose interest should prevail? The interest of the government or the welfare of the people? Crushing tax burden on petrol and diesel has made this into a People vs Government issue," Mr Chidambaram tweeted.
State oil firms have not revised petrol and diesel price for almost a week now. This, after petrol price hit a 55-month high of Rs 74.63 a litre and diesel price reached a record high of Rs 65.93 a litre.
Every rupee cut in excise duty on petrol and diesel will result in a revenue loss of Rs 13,000 crore, government officials have said.
The centre levies Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. State sales tax varies from state to state. In Delhi, value-added tax on petrol is Rs 15.84 and Rs 9.68 a litre on diesel.
Petrol in the national capital costs Rs 74.63 per litre, the highest since September 14, 2013, when the rate had hit Rs 76.06. Diesel price at Rs 65.93 a litre is the highest ever.
India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates.
The government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 per litre.
Subsequent to the excise duty reduction, the centre had asked states to also lower VAT, but just four of them -- Maharashtra, Gujarat, Madhya Pradesh and Himachal Pradesh -- reduced rates while others, including BJP-ruled ones ignored the call.
The former finance minister tweeted, "Every rupee cut in tax on petrol/diesel will result in LOSS of Rs 13,000 crore says government. Every rupee tax on petrol/diesel will result in BURDEN of Rs 13,000 crore say the people."
He said the Modi government's claim that it has electrified all villages in the country was not true as the UP had already electrified 94 per cent of the villages by October 2013, long before Narendra Modi became the Prime Minister.
Raising the issue of petrol and diesel price hike, he said it increases the burden on people. "Whose interest should prevail? The interest of the government or the welfare of the people? Crushing tax burden on petrol and diesel has made this into a People vs Government issue," Mr Chidambaram tweeted.
State oil firms have not revised petrol and diesel price for almost a week now. This, after petrol price hit a 55-month high of Rs 74.63 a litre and diesel price reached a record high of Rs 65.93 a litre.
Every rupee cut in excise duty on petrol and diesel will result in a revenue loss of Rs 13,000 crore, government officials have said.
The centre levies Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. State sales tax varies from state to state. In Delhi, value-added tax on petrol is Rs 15.84 and Rs 9.68 a litre on diesel.
Petrol in the national capital costs Rs 74.63 per litre, the highest since September 14, 2013, when the rate had hit Rs 76.06. Diesel price at Rs 65.93 a litre is the highest ever.
India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates.
The government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 per litre.
Subsequent to the excise duty reduction, the centre had asked states to also lower VAT, but just four of them -- Maharashtra, Gujarat, Madhya Pradesh and Himachal Pradesh -- reduced rates while others, including BJP-ruled ones ignored the call.
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