Amit Mitra said, “The Center receives Rs 32.90 per liter (on 20 February) as tax from petrol, while the state gets only around Rs 18.46. In the case of diesel, the tax to the central government is Rs 31.80 per liter, while the state gets only about Rs 12.77. “
The government of West Bengal on Sunday announced a reduction of one rupee per liter in tax on petrol and diesel, which came into force from midnight of 22 February. State Finance Minister Amit Mitra said that this step will give people some relief from the increase in fuel prices. Amit Mitra said, “The Center receives Rs 32.90 per liter (on 20 February) as tax from petrol, while the state gets only around Rs 18.46. In the case of diesel, the tax to the central government is Rs 31.80 per liter, while the state gets only about Rs 12.77. “
He also alleged that the Center levied a cess so that states would not have to pay their share out of this amount, “against the characteristics of the country’s federal structure”. Mitra said in response to a question that the Central Government should bring the Planning Commission into existence again.
Later, the state finance minister said in a tweet that tax exemption on fuel will be valid till June 30. Mitra said, “To reduce the burden of the common man, the state government has decided to allow a rebate of Rs. 1 per liter on the sales tax payable on the sale of petrol and diesel which is midnight of February 22, 2021 Will be applicable from 30 June 2021.
Union Petroleum and Natural Gas Minister Dharmendra Pradhan said that there are two main reasons behind the increase in fuel prices. The international market has reduced fuel production and manufacturing countries are producing less fuel to get more profit. This has plagued consumer countries. The Union Petroleum Minister further said that we have been continuously urging the OPEC and OPEC Plus countries that this should not happen. We hope that change will happen soon.
Dharmendra Pradhan said, “Another reason is Covid. We have to do various development works. For this, the central and state governments collect tax. Spending on development works will generate more employment. Investment has increased and in this budget 34% more capital will be spent. ” He further said, “The expenditure of the state government will also increase. That is why we need this tax but there is a need for balance also. I believe that the Finance Minister can find a way out.”
Significantly, the prices of petrol and diesel change at 6 am daily. The new rates are applicable from 6 o’clock in the morning. After adding excise duty, dealer commission and other things to the price of petrol and diesel, its price almost doubles. Petrol and diesel prices change every day, depending on what the prices of crude are in the international market along with foreign exchange rates.
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