No respite in taxes on petrol, diesel in State

Source: The Hitavada      Date: 11 Feb 2018 11:42:53

Business Reporter,

RAIPUR,

Feb 10,

SPIRALLING fuel prices have severely affected the common man across State. With no relief announced on fuel in the State Budget 2018-19, consumers already under stress will have no alternate option but silently suffer and compromise on their routine budget. Besides playing the role of a catalyst in increasing prices of commodities, vegetables, consumer goods and automobile industry, the zooming prices of fuel will exert immense pressure on the economic condition of end users.

While talking to ‘The Hitavada’ from Jodhpur, President of Chhattisgarh Petroleum Dealer’s Association and National Vice President of All India Petroleum Dealer’s Association Jaichand Baid said ‘Liquor and Petrol/Diesel are the major source of revenue to State Government exchequer. At present the VAT on fuel is 25% and the only option is to lower the VAT for bringing down the prices. But state government will never compromise on the issue and it was least expected in the Chhattisgarh budget proposed for 2018-19. However, without amendment in GST the prices which include high taxes are not expected to come down”.

Jaichand Baid further said that Central Government is already reeling under pressure post GST. State Government will also not agree to any suggestions from Central Government for compromise on state-level taxes. So, presently there is no advantageous option both for the Central as well as State Government to reach a favourable solution to the skyrocketing prices of fuel, he added. Since prices of fuel are stable with petrol and diesel rate being around Rs 73 and Rs 69 per litre respectively in Raipur for last three days, as an immediate solution Central Government should reduce its taxes like Custom Duty on Crude Oil import and Excise Duty etc to bring down the fuel prices. Recently, Central Government reduced Rs 2 in Excise Duty but on the other hand added Rs 2 as Cess, transferring the advantage to different head, said Jaichand Baid.

Alleging state government of ignoring concern of larger section of the society with no reduction on 25 % Value Added Taxes (VAT) on petrol/diesel prices in the State Budget presented in the assembly on February 10, Virendra Pandey, former Chairman of State Finance Commission said that the government is solely inclined in filling its coffers and passed on the blame of fuel price hike on international market. Holding the State Government responsible for siphoning of the hard earned money of the people, Pandey strongly opposed a meager 4 per cent VAT being charged by Chhattisgarh government on Air Turbine Fuel (ATF) to promote Airlines sector and creamy layer of the society. The State Government has never taken any initiative on its part to give respite to its people from the mounting fuel prices. He said that the state government is charging 25 per cent VAT on petrol and diesel prices which canbe lowered to bailout people of Chhattisgarh facing tougheconomic conditions. 

Pandey further said that when the international value of crude oil was around 35 Dollars per barrel, the State Government earned Rs 2500 crore as taxes with imposition of 25 per cent VAT. With the present prices of 70 Dollars for each barrel expected to go upto 100 Dollars in near future, State Government would get Rs 3500 cr to Rs 4000 crore in the form of taxes on fuel for the current fiscal ending in March 31, 2018, he added.

Fuel price hike invites sharp criticism

Staff Reporter,

 BHILAI,

Feb 10,

The unbridled hike in prices of petrol and diesel in State is a painful jolt not only for the populace of the whole state, but it has also invited a sharp criticism from industrial organizations and entrepreneurs. They have termed it as cascading effect on the economy as a whole, besides hampering the industrialization and development process in the state. It certainly is proving as the nemesis for populace as well as for commerce and industries in the state.

The price of diesel in last two months has gone up by more than Rs 7 and by Rs 4 of petrol. Where diesel was Rs 63.14 in December is now Rs 69.18 and petrol which was Rs 69.75, has gone up to Rs 73.79 in present. The industry is crying foul over the increase in price of the diesel, which is the main input source for transportation of raw material and finished goods, as it is giving a tough time for them. The industrialists are of the view that the price hike is increasing the inflation, which in turn, would Fuel price hike invites sharp criticismhamper the industrial growth momentum in the state. While for common man, who always is at the receiving end, would as usual, would be doomed for breaking his back bone.

KK Jha, Industrialist


“Constantly increasing prices of diesel already had a big impact on the industries in the state as it will create inflationary pressure, affecting the growth momentum,” said KK Jha, Chief Patron of BSP Ancillary Industries Association. Terming the hike as “unfortunate” and “bad omen” for industrial growth in the state, Jha said: “The power cost is already high in state, and increasing price of fuel has further added to the woes of the state’s traders and industrialists. It is limiting the profit margin of the firms and many industries in the state are likely to turn into sick industries”

Ajay Bhasin, State President

State President of Chamber of Commerce Youth Wing, Ajay Bhasin , said that it is causing adverse impact on trade and industry. “The reason is that diesel, which the major component for transportation across the country is the lifeline of Indian industries. This hike in price has adversely affected them as their profit margin is reducing to nil because the transportation charges have not been increased and the increase in expense is to be borne by the industries and not by the public in general.”

Niranjan Singh, Businessman

“The Government should bear the burden instead of passing it on the general people. The constantly increasing price of petrol and diesel in state is highly condemnable as it has badly affected the business class along with the common man in the state. The entrepreneurs are facing the heat being caused by the hike in price, Singh said and added that VAT must be reduced which was imposed upon diesel and petrol.