Now RBI has also given advice to reduce tax on petrol and diesel!

 New Delhi, Jnn. Petrol diesel, which is becoming expensive, has only loosened the pockets of the common man. But expensive fuel has also added to the troubles of the Reserve Bank of India. This is the reason why RBI Governor Shaktikanta Das had to indirectly appeal to the government to reduce the tax on petrol and diesel while announcing the RBI's bi-monthly loan policy on Friday.

RBI Governor Shaktikanta Das said that the effort to phase out indirect taxes on fuel will help in moderating inflation and reduce the potential for inflation. In fact, only in the month of October, now the prices of petrol and diesel have increased eight times. In the capital Delhi, petrol is available for Rs 103.84 and diesel for Rs 92.47 per liter.

So in Bhopal, petrol is available for Rs 112.38 and diesel for Rs 101.54 per liter. Petrol has become costlier by Rs 2.20 and diesel by Rs 2.60 per liter only in the month of October.

The rise in the prices of crude oil in the international market of expensive petrol diesel is responsible, although it is also true that half of the prices of petrol diesel is due to the tax collected by the Center and the states. Central government excise duty and state governments collect VAT.

During the Kovid epidemic, when there was a fall in crude oil prices, the government drastically increased the excise duty on petrol and diesel, which has not been withdrawn till now. Last year, during the Corona period, the central government increased the tax on petrol by Rs 13 and diesel by Rs 16 in the name of excise duty and infrastructure cess. As petrol and diesel become costlier, the VAT charged by the states also automatically increases due to the levy of ad valorem VAT.

There is a constant demand to bring petrol and diesel under the purview of GST i.e. Goods and Services, so that the tax burden on both the fuels can be reduced. But in the recent GST Council meeting, many states strongly opposed bringing petrol and diesel under the purview of GST. Because it is a big source of revenue for the states.

On the other hand, if the tax on petrol and diesel is not reduced, then its inflation can further trouble the common people because many experts are expressing the possibility of a huge jump in the prices of crude oil. Goldman Sachs has predicted crude oil prices to go up to $90 a barrel. If this happens, obviously inflation can haunt people. At the same time, the era of cheap interest rates may also end.

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