'Tax burden on petrol has become people vs govt issue'
1 May 2018 5:00 PM GMT
New Delhi: Senior Congress leader P Chidambaram on Tuesday attacked the government over high petrol and diesel prices saying the "tax burden" on petroleum products has become an issue of "people versus the government".
In a series of tweets, the former finance minister also countered the Modi government's claim that it has electrified all villages in the country, saying 94 per cent of them had been electrified by October 2013, long before Narendra Modi became the prime minister. Raising the issue of hike in petrol and diesel prices, he said it increases the burden on the people.
"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 (sic)."
"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," he said on Twitter.
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 rates climbed to a record high of Rs 65.93.
Every rupee cut in excise duty on petrol and diesel will result in a revenue loss of Rs 13,000 crore, government officials said.
The central government levies Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. State sales tax or VAT vary from state to state. In Delhi, VAT 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 rates had hit Rs 76.06. Diesel price at Rs 65.93 is the highest ever.
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