Govt rules out excise duty cut as fuel prices hit fresh high

Govt rules out excise duty cut as fuel prices hit fresh high

Govt rules out excise duty cut as fuel prices hit fresh high

On Monday, opposition parties, led by the Congress, called a nationwide strike against the constant rise of fuel prices and degradation of rupee against U.S. dollar. Kerala also has the ninth highest sales tax and other state levies on diesel, at 23.81 per cent; Andhra Pradesh imposes the highest at 28.08 percent (it had recently reduced it from 30.82 percent).

Petrol and diesel prices set new records Sunday.

Senior party leader Dilip Pandey said unrest against Narendra Modi-led government is growing and the opposition can not remain silent to the plight of common man affected by issues like fuel price hike, corruption and unemployment. The government would have to forego a tax revenue of Rs. 820 crore towards diesel, and Rs. 300 crore on petrol.

Condemning the statement of the union petroleum minister Dharmendra Pradhan that the petroleum prices were increased due to hike petroleum prices in global market and increase in Value-Added Tax by state governments, Naidu said such statements were far from truth and were aimed only to mislead the people. "A cut in oil taxes will add to the fiscal deficit".

Nearly half of the fuel price is made up of taxes.

The party has demanded that petrol and diesel should be brought under the GST, by which oil prices could drop by about Rs 15 to Rs 18. Maintaining its rise with a 14 paisa hike on Tuesday, petrol and diesel were sold at Rs 80.87 and Rs 72.97/litre, respectively. The Centre now levies a total excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel. According to petroleum dealers in the State, compared to Friday's price, petrol on Saturday cost 41 paise more while diesel price rose 48 paise a litre. Since May 2014, the excise duty on petrol has seen a skyrocketing increase of 211%, while the duty on diesel has seen an increase of 443%. "If we expand the tax base in the same proportion as we did previous year then non-oil GDP ratio will go up", he said. In Chennai, petrol costs Rs 84.05 and diesel Rs 77.13.

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