New Delhi: The Petroleum Ministry's proposal to hike fuel prices by between Rs 5 and 10 a litre found few takers. Now, it is now proposing a fuel cess on income tax. This will add to the 3 per cent education surcharge tax payers already shell out.
“Yes, there is a proposal to add a cess to income tax surcharge. We discussed so many options and cess was one of them, but nothing is decided,” said Petroleum Minister, Murli Deora.
International crude prices have doubled last year due to a supply crunch.
In the US, petrol prices have risen 20 per cent over the last year and diesel prices 30 per cent. Retail prices in the UK have trebled this year. Closer home, Indonesia raised fuel prices 29 per cent for the first time in three years to cut subsidy costs. In India, petrol prices were hiked by Rs 2 a litre in February, but have otherwise remained largely steady.
International crude prices have doubled last year due to a supply crunch.
In the US, petrol prices have risen 20 per cent over the last year and diesel prices 30 per cent. Retail prices in the UK have trebled this year. Closer home, Indonesia raised fuel prices 29 per cent for the first time in three years to cut subsidy costs. In India, petrol prices were hiked by Rs 2 a litre in February, but have otherwise remained largely steady.
“Right now we don't feel the heat very much, but that is because we are protected by the Government and insulated in many ways from the things happening outside India,” explained Upstream magazine Bureau Chief, Narendra Taneja, “but the question is how long can the Government afford to protect?”
The cess proposal is still to get past the Government. Left parties have already reacted strongly.
“This is ridiculous and not only is it ridiculous, I don't know how this idea even came about!” exclaimed Left Front MP, Abani Roy. “He (Finance Minister) is always thinking how to extract more and more money from the common people!
“Finance Minister is putting the burden on common people, particularly the tax payers. They are paying taxes and
“This is ridiculous and not only is it ridiculous, I don't know how this idea even came about!” exclaimed Left Front MP, Abani Roy. “He (Finance Minister) is always thinking how to extract more and more money from the common people!
“Finance Minister is putting the burden on common people, particularly the tax payers. They are paying taxes and
overall they have to pay extra taxes only to balance the financial sector in the question of petroleum products.”
Asia's demand is expected to increase by nearly 3 per cent this year, which means prices are set to rise further. What remains to be seen is if the Government bite the bullet now.
Asia's demand is expected to increase by nearly 3 per cent this year, which means prices are set to rise further. What remains to be seen is if the Government bite the bullet now.
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